City of Black Diamond 2012 Final Budget Skaters on Lake 14 – now JONES LAKE, just off the Enumclaw-Black Diamond Road – circa 1915. Pictured are John Bartoluzzi, Leonard Pierotti, Albert (Shorty) Jones, Jack Jones, and Tom Davies. (BDHS Calendar Series, 1983 Courtesy Black Diamond Historical Society)
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· TABLE OF CONTENTS Introduction Mayor’s Letter _________________________________________________ 1 City Overview __________________________________________________ 3 ...
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City of Black Diamond
2012 Final Budget
Skaters on Lake 14 – now JONES LAKE, just off the Enumclaw-Black Diamond Road – circa 1915. Pictured are
John Bartoluzzi, Leonard Pierotti, Albert (Shorty) Jones, Jack Jones, and Tom Davies. (BDHS Calendar Series, 1983
Courtesy Black Diamond Historical Society)
January 1, 202012
TABLE OF CONTENTS Introduction Mayor’s Letter _________________________________________________ 1 City Overview __________________________________________________ 3 Elected Officials ________________________________________________ 5 City Committees ________________________________________________ 6 Budget Summary Executive Summary_____________________________________________ _ 7 Total Program Budget____________________________________________10 Combined Operating Statement ___________________________________ 11 Organization Chart______________________________________________ 12 Employee Positions by Funding Source______________________________ 13
General Fund Summary _____________________________________________________ 14 Revenue _____________________________________________________ 15 Expenditure Summary __________________________________________ 26 General Fund Funding Agreement _________________________________ 31 General Fund Departments Legislative ____________________________________________________ 32 Executive ____________________________________________________ 33 Administration ________________________________________________ 34 City Clerk _____________________________________________________ 35 Finance ______________________________________________________ 36 Information Services ___________________________________________ 37 Facilities _____________________________________________________ 38 Legal ________________________________________________________ 39 Municipal Court _______________________________________________ 40 Police Department _____________________________________________ 41 Fire Department _______________________________________________ 45 Animal Control ________________________________________________ 46 EMS Supplies _________________________________________________ 46 Community Development _______________________________________ 47 Natural Resources _____________________________________________ 50 Economic Development _________________________________________ 51 Parks and Recreation ___________________________________________ 52 Cemetery ____________________________________________________ 54 Central Services and Employee Recognition _________________________ 55 Funding Agreement, Studies, Deposits and Transfers __________________ 56
Special Revenue Funds
Street Fund 101 _______________________________________________ 57 Real Estate Excise Tax REET 1 (104 Fund) ___________________________ 59 General Government Capital Fund (310 Fund) _______________________ 60 Real Estate Excise Tax REET II (105 Fund) ___________________________ 61 Public Works Capital Fund (320) __________________________________ 62 Internal Service Fund (Fire, Police and PW Equipment) ________________ 63
Utility Funds Water Department (Fund 401) ____________________________________ 65 Water Supply and Facility Fund (Fund 402) __________________________ 68 Water Capital Fund (Fund 404) ___________________________________ 69 Wastewater Department (Fund 407) _______________________________ 70 Wastewater Capital Fund (Fund 408) ______________________________ 72 Stormwater Department (Fund 410) _______________________________ 73 Stormwater Projects (Fund 410) __________________________________ 75
Capital Funds Capital Improvement Program Overview ___________________________ 76 CIP Summary 2012 - 2017 _______________________________________ 79
February, 2012 Dear Honorable Black Diamond City Council Members and Citizens:
With the many challenges the City has faced over the past few years due to the economy, I am pleased to present you with a balanced budget for 2012. We have preserved essential core services without using any General Fund balance In 2011 we ended the year with departments under budget by $252,254 which was added to our General Fund providing a total ending fund balance of $424,069. This restored the 10% reserve recommendation in Black Diamond’s financial management policies. The final 2012 Budget has expected General Fund revenue of $4,998,082, which is a decrease of $59,597. This reduction is primarily due to the completion of some of the developer-funded Master Planned Development Environmental Impact Statement reimbursements but also includes reduced revenue due to decreases in utility taxes, state sales tax assistance to cities and parking fees. This revenue decrease was partially offset by a 1% increase in property tax revenue as well as a $2,000 increase in sales tax revenue above expected 2011 collections. General Fund expenditures were first projected with all vacant positions filled and with union and non-union COLA and step increases, as well as the elimination of all furlough days. This resulted in an out-of-balance amount of $361,578. To bring the budget into balance, significant reductions were achieved by continuing to freeze the vacant city administrator position as well as the two vacant police positions. The part-time court clerk position was cut from .75 to .5. There will be no non-union COLAs; and furlough days have been reduced from five to four days (July 5; August 31; December 24; December 31, 2012) for all employees except police and utility workers. After further review, all departments were able to reduce their budgets by an additional $66,500 resulting in General Fund operating expenditures of $4,998,082 which brought the budget into balance.
Increases to General Fund expenditures include a 3% cost of living adjustment (COLA) for commissioned police officers per the agreement between the Police Guild and the City. Our contract with Fire District #44 calls for a 3.2% increase in 2012. The impact to the 2012 budget is an increase of $26,235 for police and $14,195 for fire. The Community Development budget has also increased by $26,568 for code enforcement, plan check and building inspection professional services according to the ILA we have with the City of Covington. Inspection and Plan Check revenue is budgeted to cover this increase. The City's liability insurance increased by 12% ($13,411) totaling $111,766. In 2012, election costs will increase by approximately $5,100.
Black Diamond operates three utilities: Water, Wastewater (sewer) and Stormwater, each with its own budget. At Council request, the Funding Agreement reimbursement to the three utility departments has been restored to 100%, resulting in an increase to each utility fund for staff overtime, training and professional services.
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Black Diamond Final Budget 2012 Only capital expenditures adopted in the Capital Improvement Plan are included for these utilities. In 2011, the water meter replacement program and the first phase of the Department of Ecology Stormwater Grant were completed. There will be no utility rate increases in 2012. In addition to the three utilities, the Public Works Department also manages City streets. The 2012 budget includes projects from the adopted 2012-2017 Capital Improvement Plan, including engineering for the Rock Creek Bridge; elevation of Abrahms Avenue; Ginder Creek land acquisition; trail projects; and replacing one police and two fire vehicles. The City was fortunate to receive several grants in 2011 which helped fund preliminary work on the Shoreline Master Plan; Roberts Drive sidewalk (phase 1) including the rain garden; 288th Street paving; Boat Launch improvements; Lawson/Newcastle intersection; and the police station remodel. Grants awarded in 2012 so far are for Phase II of the Roberts Drive sidewalk project and a CDBG grant for the 5th St water main replacement.
We know that Governor Gregoire recently announced the State is facing a two-billion dollar budget deficit in 2012. As the State meets and resolves this deficit, we will keep council informed of any potential financial impacts to the City of Black Diamond.
I want to take this opportunity to thank staff for their assistance in providing this balanced budget. It was not an easy task. Their continued hard work and the support of Council and citizens are greatly appreciated.
Rebecca Olness, Mayor City of Black Diamond
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Black Diamond Final Budget 2012
History of Black Diamond, Washington Black Diamond incorporated in 1959, but has had a much longer history as a historic town in Washington. Black Diamond was first established as a community in the late 1880s for the mining of coal. At the turn of the century the town was a major exporter of coal in the region. The Pacific Coast Coal Company in Black Diamond became the largest coal mining operations on the West Coast. Some historic buildings retain their original locations. In 2010, Black Diamond’s historic Railroad Avenue was updated and refurbished making a great improvement to the Historic Museum and Black Diamond Bakery area. Black Diamond offers a warm and friendly rural, small town atmosphere with spectacular mountain views. The city is nestled in the foothills within miles of the beautiful Green River Gorge and Flaming Geyser Park. The City is on the verge of growth. At 4,190 citizens, population projections may reach above 20,000 in the next 20 years. Over the past several years, major annexations have increased the population and acreage of Black Diamond. The annexation of the Lake Sawyer area in 1998 doubled the number of citizens. Recent annexations in the city’s urban growth area have increased the city’s size by approximately 1,600 acres. In the Budget this year, we have added some unique and interesting historical photos, courtesy of the Black Diamond Historical Society.
Form of Government Black Diamond is a “Code City” as described under Title 35A in the Revised Code of Washington. The City operates under a strong mayor form of government with five elected council members serving staggered four-year terms. The Mayor serves as the chief administrative officer of the city. The Council acts as the legislative body. When the City reaches a population of 5,000 state law requires expansion to a seven-member council. The City is served by Congressional District 8 and Legislative Districts 31, 47 and 5.
Budget Process Budgeting is an essential element of the financial planning, control and evaluation process of government. The planning process involves determining the types and levels of services to be provided by the various departments, programs and functions. The City of Black Diamond budgets annually on the calendar year beginning January 1 and ending December 31. Budget adjustments are limited by state law (35A.33.120). Allocations are made based on a fund structure, limiting uses outside of each fund. Funds are segregated to carry on specific objectives. Funds are budgeted on a cash basis in accordance with the Revised Code of Washington, RCW 35.33. Appropriations in the budget constitute maximum expenditure authorizations during the year and cannot be legally exceeded until subsequently amended by the City Council.
How Black Diamond serves the Community The City of Black Diamond strives to provide a safe and enjoyable environment for residents, businesses and visitors alike. Foremost, safety is a priority in Black Diamond. Our City’s police, and Fire District 44’s fire and emergency service employees are both dedicated and top notch. City employees provide other important services such as road maintenance, community development,
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Black Diamond Final Budget 2012 code enforcement, a municipal court and water utility services, stormwater management and wastewater utility billing. Utility and maintenance workers also maintain our local parks and the cemetery. Black Diamond has an active local community center and unique historical museum operated as nonprofits receiving limited financial assistance from the City. Support staff keeps everything in the City running smoothly, and the City Council and Mayor work together to respond to citizen concerns and carefully direct the future of Black Diamond. The City has a bi-monthly newsletter containing important community information and the website at www.ci.blackdiamond.wa.us is another great resource for information. Public hearings and City Council meetings are held regularly and are open to the public. Everyone is encouraged to attend.
MAYOR REBECCA OLNESS FOUR-YEAR TERM EXPIRING 12/31/13
TAMIE DEADY CRAIG GOODWIN JOE MAY VACANT RON TAYLOR POSITION 1 POSITION 2 POSITION 3 POSITION 4 POSITION 5
FOUR-YEAR TERM FOUR-YEAR TERM FOUR-YEAR TERM FOUR-YEAR TERM FOUR-YEAR TERM EXPIRES 12/31/15 EXPIRES 12/31/13 EXPIRES 12/31/15 EXPIRES 12/31/13 EXPIRES 12/31/15
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Black Diamond Final Budget 2012
City Council Committees In addition to serving on the City Council, Council members also serve on Council committees for the City of Black Diamond based on their interests. They may also choose to serve on any number of intergovernmental committees. The committees meet on an as-needed basis to hear issues in each topic area. Council members provide recommendations to the full Council. Such recommendations are advisory only and any actions are made by the full Council in open public meetings. Committee appointments are made the 1st Council meeting in January. Budget, Finance and Administration Committee Chair – Council Member May Council Member Goodwin The Budget, Finance and Administration Committee in conjunction with City Staff may consider matters related to the financial issues of the City including the annual and capital budgets, revenues and expenditures, sales of bonds, general fiscal and financial conditions, voucher approval, rates and fees, audit and operations of the City including but not limited to, facilities and properties, computerization, periodic budget and financial reports and policy matters related to personnel in coordination with the Finance and Administration Departments. Cemetery/Parks Committee Chair – Council Member Deady Council Member May The Parks and Cemetery Committee in conjunction with City Staff may consider matters related to planning and
implementation of park and recreational facilities, capital improvement program, trails and cemetery. Planning and Community Service Committee Chair – Council Member Goodwin The Planning and Community Services Committee in conjunction with City staff may consider matters of a non-quasi-judicial nature related to community growth and development including but not limited to planning of the physical, economic, aesthetic and social development of the City, comprehensive plan, zoning code and housing, annexation policies and code enforcement. This committee may also consider matters not included in other committee’s scopes of authority. Public Safety Committee Chair – Council Member Taylor Council Member Deady The Public Safety Committee in conjunction with City Staff may consider issues related to the public health, safety and welfare of the citizens of Black Diamond including but not limited to law enforcement, fire safety, court, hazardous materials, animal control, special events and emergency services. Public Works Committee Council Member Taylor The Public Works Committee in conjunction with City Staff may consider matters related to water, sewer, solid waste, recycling, utility franchises, stormwater management, transportation, capital improvement program, transit, streets, street lighting, signalization and local street improvement.
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Budget Summary
Courtesy Black Diamond Historical Society
Black Diamond Final Budget 2012
Executive Summary Revenue General city operations include operations of police, fire, municipal court, community development, permitting and internal services such as finance. Unrestricted funds such as general taxes, fees and charges support the provision of those services to the citizens of Black Diamond. Locally levied taxes represent 73.7% of Black Diamond’s General Fund revenues. Taxes include real and personal property tax, local sales tax, utility taxes and gambling tax. Property taxes are assessed and collected by the King County Tax Assessor’s office. The great majority of property tax goes to fund schools and to a lesser degree, King County. King County has calculated Black Diamond’s property mil rate at $2.59 per each $1,000 in property value. In 2012, approximately $1,385,500 property tax will be collected with 100% used for public safety. This includes the allowed 1% increase of 13,697 or 43 cents per month. Sales tax, utility taxes and other taxes constitute 13.6% of the General Fund revenues. Retail sales and use taxes are dependent on retail sales of products and services in Black Diamond as well as construction. For every $100 spent in Black Diamond $8.60 is collected and is shared by various jurisdictions. Less than 10% of the total dollars collected comes back to the City. Sales tax revenues are budgeted at $292,000 for 2012. Black Diamond also levies a 6% utility tax on telephone, electrical energy, natural gas, solid waste, water, sanitary sewer and stormwater services, and 1% on cable services. The 2012 budget includes $464,850 in utility tax revenue. All utility taxes received are placed in the General Fund and are used to fund public safety. The City of Black Diamond collects taxes on gambling activities as allowed by the State of Washington. Currently, the City receives gambling tax on pull-tabs and punchboards and other amusement devices. $3,500 is anticipated for 2012 and is also used to support public safety. Licenses and permits, intergovernmental revenue, charges for services, fines and forfeitures, miscellaneous revenue and the Funding Agreement make up the remainder of the City’s revenue sources. Business licenses are designed to cover the cost of administration, inspection and other services for occupations, trades and activities regulated by the City. Due to the downturn in the economy, 2012 business license revenue is projected to decrease 5% to $24,320. Cable franchise fees at 5% are expected to contribute $57,200, and gun permits and fingerprinting revenue is forecast at $1,700.
Land use and permitting fees are part of Community Development. Due to the continued slowdown in home building and Improvements, projected revenue for 2012 is $72,050. Intergovernmental revenues include grants, entitlements, shared revenues and payments for goods and services provided to the City from the state or other governmental entities. They include per capita distributed revenues such as $51,600 for liquor excise tax and profits, $53,512 for King County
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Black Diamond Final Budget 2012 Emergency Medical Services revenue and $63,520 for miscellaneous state and federal police and recycling grants. Black Diamond also receives local government assistance funds that provide ongoing State financial support to cities with a low sales tax base. Due to State cuts, we are decreasing the budget to $39,000 a 24.8% decrease from 2011. Charges for services cover a multitude of City functions, including records services, copies of maps, publications and other documents and passport fees. Miscellaneous charges for 2012 have been estimated at $18,600. Parking at Lake Sawyer boat launch is decreased to $12,000 and Police Traffic School is expected to bring in $20,000 in 2012. Fines and forfeitures represent the City’s portion collected on citations and other Municipal Court fees. The amount is projected at $135,900 for 2012. Miscellaneous revenues include $1,100 interest on investments, $1,500 for the sale of surplus equipment, and $500 is forecasted for other miscellaneous revenue. The City of Black Diamond’s budget also includes revenues from a developer funding agreement approved by the City Council in mid-2007. The agreement provides for up to $2 million per year for City staffing costs plus additional funding for various capital outlays and consultant fees. General Fund revenues from the funding agreement are estimated at $1,439,118 in 2012, and one time only MPD (Master Planned Development) revenue at $634,000. Council adopted a new Funding Agreement December 12, 2011 in Ordinance 11-970 for the Villages and Ordinance 11-970 for Lawson. The Funding Agreement is located in the appendix of this document, and the Ordinances and all exhibits are on the City’s web site, at www.ci.blackdiamond.wa.us under the City Clerk Department listing of Ordinances. Any budget changes that may be needed will be processed in Budget Change ordinances during 2012 and are not reflected in this budget document. Special Revenue Funds in the budget are limited to uses designated by State law. The City of Black Diamond has established a fund for collection of the real estate excise tax. This tax is authorized by RCW 82.02.020 and tax is levied at two ¼ percent rates on the sales price of real estate. State law restricts the use of those revenues specifically to certain capital projects outlined in approved capital plans. For 2012, the City estimates each ¼ percent of REET revenue at $35,500. The Street Fund is primarily supported by gas tax revenues, grants and right-of-way permits. Funding for 2012 includes $85,810 in gas tax revenue and $3,000 in right-of-way permits. The City of Black Diamond also operates wastewater, water and stormwater utilities. Utilities operate separately from the General Fund budget as Enterprise Funds with revenues flowing from rate charges and fees. Wastewater revenues for 2012 are estimated at $759,457; water revenues at $656,167 plus Developer debt reimbursement of $683,505 to a total of $1,339,672; and stormwater revenues of including a $81,000 Department of Ecology grant, totaling $327,407. No rate increases for utility funds were added in the 2012 Budget. Expenditures Just as the City of Black Diamond must document projected revenue, it must also document how it will expend funds. In Washington cities, expenditures (uses) can never exceed projected revenues (sources). Each fund must balance independently. State law requires the City of Black Diamond to
Black Diamond Final Budget 2012 establish and maintain a balanced budget. Therefore, sources and uses for all funds in 2012 are budgeted at $12,721,527. A primary goal of the Black Diamond City Council is maintaining efficiency and effectiveness of municipal services at the lowest possible cost to taxpayers. This fiscal prudence is reflected in current projected expenditures. The majority of the General Fund expenditures fund Public Safety services—Police, Fire, Prosecuting Attorney and Municipal Court. Together, those services comprise $2,504,869 or 57.4% of General Fund expenditures, or 84.5% of the General Fund when factoring out funding agreement positions. The budget was difficult to balance in 2012 and continued to include three frozen positions: a City Administrator; and one Police Officer and one sergeant position. Court also reduced their position from 3/4 to a 1/2 fte. No new positions were budgeted in 2012. All departments were asked to make cuts to their budgets. The 2012 budget continued with no cost of living adjustments and no step increases for non-represented employees. Furlough days were continued but decreased from five to four in 2012. During those four days City Hall will be closed. These and many other efforts were needed to bring the General Fund into balance without using any of the cash reserves. We know the State is facing budget difficulties and has listed some of our shared liquor excise and tax revenue as well as Shared State assistance as at risk of reduction or loss. We will keep Council informed of any final impacts to our revenue.
The State Bank of Black Diamond was likely constructed in the late 1890s and became a bank and jewelry shop around 1912. This photo was taken in 1921. The bank was located in what would later become Koerner's Drug Store and today is the home of Black Diamond Pizza & Deli. The building still has the old walk-in bank safe in the back. The State Bank closed in 1922 when its banker,
Thomas Fournier, absconded with about $1,200 in depositors’ funds. (Courtesy Black Diamond Historical Society)
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Black Diamond Final Budget 2012
2012 Operating and Capital Final Budget
Utility Funds
$2,746,171
Internal Service
Fund$269,670
2012 Budget$12,721,527
Operating Budget
$8,644,939
Capital Budget
$4,076,588
OPERATING
CAPITALFire Equipment
Vehicles
$69,500
Police VehicleReplacement
$45,000
2012 PROJECTS
Streets$288,782
Water$480,000
Wastewater
$110,000
Stormwater
$78,000
General Fund
$5,455,415
Special Revenue
Funds$443,353
Public Works
Funds$2,894,692
OPERATING
Executive$14,076
Legislative$12,599
Administration
$153,399
City Clerk
$75,308
Finance
$281,405
Information
Services$145,160
Legal Services
$104,500
Central Svcs
$34,727
Municipal Court
$204,319
Police
$1,791,451
Emergency Preparedness
$5,000
Fire
$446,337
Community
Development$413,977
Natural Resources$162,485
Economic Development
$143,156
OPERATING
Water$381,011
Wastewater$756,184
Stormwater
$275,624
General
Government $912,226
2012 PROJECTS
Public Safety$43,000
Parks & Recreation
$343,000
Facilities &Admin$30,000
STREET
Operating$171,834
Street > Equip Res
$10,000
End Cash & Inv $261,519
END CASH &
INVFire Equipment
Reserves
$176
Public Works Equipment
Reserves$154,994
INTERNAL
TRANSFERS Stormwater > Wstwtr Res for
Debt$30,400
Water > Equip
Res$10,000
Wastewater > Equip Res
$10,000
Stormwater > Equip Res
$10,000
Stormwater > Capital Res
$8,000
END CASH &
INV Water
$129,588
Wastewater$98,773
Stormwater$66,316
END CASH & INV
WSSFA$122,800
Water Capital$377,240
Wastewater
$692,245
End Cash & Inv
REET II$308,343
Facilities
$279,821
Parks
69,323
Cemetery$17,277
Animal Control Services
$9,762
NON
OPERATING
MPD's EIS and
SEPA$634,000
END 2012 CASH
& INV
$457,333
CAPITAL DEBT
Govt Capital > Wstwtr Res for Police Record
System$42,000
INTERNAL
TRANSFERS & DEBT
To Water for
Debt $125,000
Wstwtr Res to
Wstwtr Ops $50,000
CAPITAL DEBT
Water Debt$970,275
REET II
REET II > Street Cap Projects
$168,782
REET II > REET I$93,500
REET I
REET I > Gen Gov't Projects
$98,750
REET I > EquipRes
$79,915
End Cash & Inv
REET I$275,561
N O T E
2012 Budget includes
$736,347 in Internal
Transfers
NET BUDGET $11,985,180
with ending bal
NET BUDGET$9,040,292
without ending balances
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Black Diamond Final Budget 2012
Beginning
Fund
Balance
2012
Revenue
Total
Sources
2012
Expend-
itures
Ending
Fund
Balance
Total
Uses
General Fund 001 457,333 4,998,082 5,455,415 4,998,082 457,333 5,455,415
Special Revenue Fund - -
101 Street Fund 310,627 132,726 443,353 181,834 261,519 443,353
Utility Funds401 Water Fund 151,202 1,339,672 1,490,874 1,361,286 129,588 1,490,874
407 Wastewater Fund 105,500 759,457 864,957 766,184 98,773 864,957
410 Stormwater Fund 62,934 327,406 390,340 324,024 66,316 390,340
Capital Funds310 General Government CIP fund - 458,000 458,000 458,000 - 458,000
320 Street CIP Fund - 288,782 288,782 288,782 - 288,782
402 Water Supply and Facility Fund 122,800 300,000 422,800 300,000 122,800 422,800
404 Water Capital Fund 486,240 196,000 682,240 305,000 377,240 682,240
408 Wastewater Capital Fund 723,545 128,700 852,245 160,000 692,245 852,245
410 Stormwater Capital Fund 78,000 78,000 78,000 78,000
104 REET Fund - General Govt 321,026 133,200 454,226 178,665 275,561 454,226
105 REET Fund - Street Projects 530,125 40,500 570,625 262,282 308,343 570,625
Internal Service Fund 5101 Fire Equipment Reserve Fund 34,661 35,015 69,676 69,500 176 69,676
2 Street Equipment Reserve Fund 114,694 40,300 154,994 154,994 154,994
3 Police Equipment Reserve Fund 45,000 45,000 45,000 45,000
Grand Total All Funds 3,420,687 9,300,840 12,721,527 9,776,639 2,944,888 12,721,527
All Funds 2012 Final Budget Summary - Combined Operating Statement
Note: Employee change from 2011 Amended Budget: -.25 FTE Court Clerk (from 75% to 50%) *One Sergeant promoted to Commander in the Police Department, leaving one vacant sergeant position to be filled. There are currently 8 police officers, so one position is currently being funded from the sergeant vacancy (as of 11/21/11).
Jack Duncalf’s Black Diamond MEAT MARKET, circa 1890. The market was on the corner across Railroad Avenue from the train depot/museum.
(Courtesy BD Historical Society)
Sergeant*
2.0 fte (1Vacant &
Frozen)
Police Officers 8.0
fte (1Vacant &
Frozen)
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Black Diamond Final Budget 2012
Positions
Full Time
Equivalent
(FTE)
Funding
Agreement
General
Fund
Street
Fund
Water
Fund
Waste
water
Fund
Storm
water
Fund
Municipal Court
Court Administrator 1.00 1.00
Court Clerk 0.50 0.50
Total Court 1.50 0.00 1.50 0.0 0.0 0.0 0.0
Administration
City Administrator, (Frozen & Unfunded) 1.00
City Clerk/Asst City Administrator 1.00 1.00
Admin Assistant I 1.00 0.10 0.3 0.3 0.3
Total Administration 3.00 1.00 0.1 0.0 0.3 0.3 0.3
City Clerk
Deputy City Clerk 1.00 0.60 0.04 0.12 0.12 0.12
Total City Clerk 1.00 0.00 0.6 0.0 0.1 0.1 0.1
Finance Department
Finance Director 1.00 1.00
Deputy Finance Director 1.00 1.00
Senior Accountant 0.75 0.45 0.03 0.09 0.09 0.09
Total Finance 2.75 2.00 0.45 0.03 0.09 0.09 0.09
Information Services
Information Services Manager 1.00 1.00
Total Information Services 1.00 1.00 0.0 0.0 0.0 0.0 0.0
Police Department
Police Chief 1.00 1.00
Police Commander 1.00 1.00
Sergeant (1 Frozen & Unfunded) 2.00 1.00
Police Officer (1 Frozen & Unfunded) 8.00 7.00
Police Records Coordinator 1.00 1.00
Police Clerk 0.63 0.63
Total Police Department 13.63 0.00 11.63 0.00 0.00 0.00 0.00
Community Development
Community Development Director 1.00 1.00
Associate Planner 1.00 1.00
Permit Technician Supervisor 1.00 1.00
Total Community Development 3.00 3.00 0.00 0.00 0.00 0.00
Economic Development
Economic Development Director 1.00 1.00
Total Economic Development 1.00 1.00 0.00 0.00 0.00 0.00 0.00
Facilities Department
Facilities Equipment Coordinator 1.00 1.00
Total Facilities 1.00 1.00 0.00 0.00 0.00 0.00 0.00
Stewardship
Stewardship Director 1.00 1.00
Total Stewardship 1.00 1.00 0.00 0.00 0.00 0.00 0.00
Public Works
Public Works Director - Funding 1.00 0.10 0.15 0.25 0.25 0.25
Seasonal Help for Parks 0.42 0.04 0.06 0.10 0.10 0.10
Total Public Works 5.42 2.00 0.34 0.51 0.85 0.85 0.85
Grand Total Budget Positions (FTE's) 34.30 12.00 14.62 0.58 1.36 1.36 1.36
Less Frozen and Unfunded -3.0
Actual Funded Positions (FTE's) 31.30
2012 Employee Allocations by Funding Source
13
General Fund
This May 1926 photo is of the BLACK DIAMOND MIDGETS. First-graders Jessie Malgarini, Doreen Rhodes, Hope Stellpflue, Nora
Gaffney, Eleanor Wales, and Margaret Lombardi (patient) show off their first aid training talents. (Courtesy Black Diamond Historical Society)
Black Diamond Final Budget 2012
General Fund Revenue in 2012 is estimated to be $5,455,415. There is a very slight increase
in operating revenue overall to the 2011 Amended Budget. The pie chart below shows total operating revenue of $4,364,082 in 2012. Each revenue area will be discussed in the pages that follow.
General Fund Revenue Summary2010
Actual
2011
Amended
Budget
2011
Actual
2012 Final
Budget
11 to 12
Budget
Change
% Budget
Change
General Fund Taxes 1,735,153 2,122,639 2,131,984 2,143,850 21,211 1.0%
Licenses and Permits 80,821 81,100 80,684 81,520 420 0.5%
Total Beginning Fund Cash and Investments 456,135 342,350 342,350 457,333 114,983 56.0%
Total Sources 5,085,066 5,400,029 5,606,764 5,455,415 55,386 1.0%
Total Operating Revenue $4,364,082
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Black Diamond Final Budget 2012
General Fund Taxes Locally levied taxes represent Black Diamond’s largest portion of revenues of $2,143,850 or 42.9% of the City’s General Fund operating revenue. Taxes include real and personal property tax, local sales tax, utility taxes on utility services (water, wastewater, stormwater, electric, gas, cable and telephone) and gambling taxes. A slight increase of $21,211 is anticipated in 2012. The increases are in property, sales and electrical utility taxes. Decreases are expected for other utility tax revenue, as they have been trending down.
Tax Revenue - General Fund2010
Actual
2011
Amended
Budget
2011
Actual
2012 Final
Budget
11 to 12
Budget
Change
% Budget
Change
General Property Taxes 998,553 1,369,803 1,360,492 1,383,500 13,697 1.0%
Total General Fund Taxes 1,735,153 2,122,639 2,131,984 2,143,850 21,211 1.0%
Total Tax Revenue $2,143,850
15
Black Diamond Final Budget 2012
Property taxes make up 64.5% of the General Fund’s tax revenue and are expected to generate
$1,391,562 in revenue for the City in 2012. The City’s levy rate in 2012 is $2.59 per each $1,000 of assessed value. All revenues from property taxes go directly to the General Fund to support public safety for police, fire protection and emergency services. The City of Black Diamond depends heavily on property tax collections, as the City has a small commercial base.
In Washington cities such as Black Diamond, property tax increases are limited to a 1% total dollar annual increase per year unless voters approve a lid-lift or larger percent increases. King County sets assessed valuation and calculates levy rates.
In Black Diamond the total tax levy rates range between $12.95 and $13.74 per thousand dollars in assessed valuation, depending on the school district in your neighborhood. Of that amount Black Diamond receives $2.59 per thousand of a property’s value, or close to 20% of the total. All of that money is used to support Black Diamond’s Fire, Police and Emergency Services. Property taxes provide 64% of the City’s public safety revenue. The City’s portion of the property tax bill on a $250,000 Black Diamond home will cost approximately $53.96 per month in 2012. This is a .42 cent per month increase from last year for a home with the same value.
Regular Levy Base 865,426 876,039 901,740 926,593 951,399 978,750 1,360,227 1,369,593
% change from prior year 4.2% 11.2% 13.5% 12.2% -11.9% -5.0% 0.7%
Population 4,080 4,080 4,085 4,120 4,155 4,180 4,190 4,160
Assessed Valuation History
$0
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
2005 2006 2007 2008 2009 2010 2011 2012
$4
31
,61
2,8
20
$4
49
,79
3,8
88
$5
00
,03
9,9
66
$5
67
,61
4,0
46
$6
36
,89
5,2
56
$5
55
,12
2,1
81
$5
32
,99
7,2
58
$5
36
,58
0,6
66
Ass
ess
ed
Val
uat
ion
This is how a typical $250,000 residence’s property taxes are collected and distributed:
Property taxes owed on a $250,000 home in the City is approximately $3,238 per year, with $648, or 20% coming back to Black Diamond to support local police, fire and EMS services.
*Example shows Enumclaw School District levy rate of of $5.31
(Kent's school rate is $5.60 and Tahoma's school rate is $5.58)
For a $250,000
Appraised Black Diamond Home in 2012
$3,238 in Property Taxes will be due in 2012*
State and Local Schools59.6% King County
12.7%
Special
Districts7.6%
Black Diamond20.0%
17
Black Diamond Final Budget 2012
Sales tax revenue for the 2012 budget is $292,000 or 13.6% of General Fund tax revenue. For
every $100 spent in Black Diamond, $8.60 is collected by the State and is shared by various jurisdictions. These jurisdictions include our city, Washington State, King County and Criminal Justice programs. Black Diamond receives a bit less than 10% of the total. Black Diamond’s sales tax revenues are dependent on retail sales of products and services sold in Black Diamond, as well as tax on new construction. In July 2009 sales tax streamlining went into effect in Washington State. This law shifts sales tax collections to the delivered destination rather than the place of purchase. This has provided some improved sales tax collections here. Overall sales tax revenues look modestly positive for 2012, as the economy is still showing signs of recovery.
Washington State73.8%
City of Black Diamond
9.6%
King County 15.2%Criminal Justice
1.4%
2012 Sales TaxesTaxed Amount is 8.6% of retail sales
Based on a $1,000 sale, retail sales tax is $86 and is distributed in the following way:
Sales Tax Monthly Data Analysis 2007 - 2011
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
2007 2008 2009 2010 2011
18
Black Diamond Final Budget 2012
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$1
78
,553
$1
71
,913
$2
02
,713
$1
78
,703
$2
30
,263
$2
27
,760
$2
89
,613
$3
05
,497
$2
86
,610
$2
49
,526
$2
65
,177
$2
97
,333
$2
92
,000
Actual Sales Tax Collection History and 2012 Budget
2011 Black Diamond Sales Tax Trends
Increasing: 1) Construction 2) Retail trade 3) Administrative and other services 4) Real estate, rental and leasing Decreasing: 1) Food services and drinking establishments 2) Professional, technical, information and insurance services 3) Utilities
19
Black Diamond Final Budget 2012
Utility taxes for Black Diamond in 2012 are projected to be $464,850 or 21.7% of General Fund
tax revenue, which is all used to support public safety. Black Diamond levies a 6% utility tax on all public and private utilities such as electric, natural gas, water, wastewater, stormwater, telephone, and 5% on cable services. An additional 1% is collected as a cable franchise fee. Projected revenues include decreases in telephone, wastewater, solid waste, water, and gas utility taxes. Electric utility taxes have been increased toward trend, but overall the 2012 budget is 2.8% less than the 2011 budget.
Cable TV Utility Tax 11,188 11,000 11,519 11,200 200 1.8%
Gas Utility Tax 1,175 2,100 560 750 (1,350) -64.3%
Total Utility Revenue 464,402 478,336 470,543 464,850 (13,486) -2.8%
$-
$50,000
$100,000
$150,000
$200,000
$250,000
2011 2012
20
Black Diamond Final Budget 2012
Cable Franchise Fees and Business License revenue comes from a 5% cable franchise
fee. This fee plus a 1% utility tax equals the 6% utility tax paid by other utility companies. Business license revenue helps cover the cost of administration, inspection and other services for those occupations, trades and activities regulated by the City.
Business License and Cable
Franchise Fee Revenue 2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
Business Licenses 25,845 25,600 23,785 24,320 (1,280) -5.0%
Community Development Revenue includes fees related to land use and construction
activities such as plan checks and land use fees, building, mechanical and plumbing permits. Construction activity remained slow in 2011 with the exception of development plat fees.
Community Development
Revenue2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
Permitting Revenue
Building Permit Fees 20,031 25,000 26,517 25,000 0%
Total Permitting Revenue 23,618 29,500 36,170 31,200 1,700 5.8%
Land Use Fees
TDR Application/Credit 500 750 250 50.0%
Various Land Use Fees 3,793 2,000 99,550 7,500 5,500 275.0%
Lot Line Adjustments/Plats 2,000 206,700 600 (1,400) -70.0%
Various Shoreline Fees 1,350 2,750 200 500 (2,250) -81.8%
SEPA Fees and Appeals 1,991 2,500 3,000 3,000 100%
Total Land Use Fees 7,135 7,250 308,950 12,350 5,100 70.3%
Plan Check Fees
Plan Check Review Fees 14,509 20,000 14,184 20,000 0%
Fire Plan Check Fees 767 750 495 500 (250) -33.3%
Total Plan Check Fees 15,276 20,750 14,679 20,500 (250) -1.2%
Other Community Dev. Revenue
King County Rec. fees & code fines, etc. 45 252 300 300 100%
Copying Services 534 500 476 700 200 40.0%
Community Development Deposits 1,812 3,000 13,615 2,000 (1,000) -33.3%
Hearing Examiner Fees 5,000 5,000 0%
Total Other Community Dev 2,391 8,500 14,343 8,000 (500) -5.9%
Total Community Development Rev 48,420 66,000 374,142 72,050 6,050 9.2%
21
Black Diamond Final Budget 2012
Police Revenue includes largely intergovernmental funding including grants, shared revenues,
criminal justice funds and payments for goods and services provided to the City from the State or other governmental entities. Other revenue includes traffic school, gun permits and fingerprinting revenue as well as donations and other minor sources.
Police Revenue 2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
Police Intergovernmental Revenue
Marine Grant-USCG 97-012/Wa Parks 29,597 25,353 8,714 15,000 (10,353) -40.8%
DUI and Other Criminal Justice Assistance 600 (600) -100.0%
Transfer in from Criminal Justice Fund 102,000
Total Criminal Justice Revenue 187,427 88,900 88,905 87,000 (1,900) -2.1%
Total Police General Fund Revenue 280,886 168,923 147,026 167,420 (1,503) -0.9%
22
Black Diamond Final Budget 2012
Intergovernmental Revenue includes grants, entitlements, shared revenues and payments
for goods and services provided to the City from the State or other governmental entities. They include per capita distributed revenues such as liquor excise and profit taxes and state and federal grants. The City receives State assistance funds approved by the passage of ESSB 6050. This legislation was intended to provide ongoing financial assistance to cities and counties that have a low sales tax base and are having difficulty providing basic services. These funds were created by diverting a small portion of the State real estate excise tax from the Public Works Trust Fund. These revenues have declined significantly since 2010, thus 2012 was budgeted to 2011 actuals.
Intergovernmental Revenue (non-
police) 2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
Sales Tax Assistance from State 73,172 51,865 38,489 39,000 (12,865) -24.8%
Recycle Grants, King County and State 19,037 19,002 19,002 19,000 (2) 0.0%
Total Intergovernmental Rev 199,214 176,184 164,627 163,112 (13,073) -7.4%
Charges for Services includes charges and fees for various services the City performs such as
passport services, records services, grant reimbursements, copies, maps and publications, as well as charges for the Black Diamond Cemetery and Lake Sawyer parking fees. The Central Service allocation includes street, water, wastewater and stormwater portion of cost of non-reimbursed expenses primarily for a portion of the cost for the City Clerk for code, minutes, records, shared paper, postage, advertising, telephone, computer systems, facility costs, banking and credit card fees, payroll, vendor and receipt processing, and for planning and related costs. Also a small amount of costs are allocated for the City Council and Mayor and other staff as they work on utility related matters. Traffic school revenue has been down due to the unfilled officer positions and related citations.
Charges for Services (non-police) -
General Fund2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
Misc Charges for Services 773 350 1,033 1,500 1,150 328.6%
Passport Fee 8,025 5,000 4,900 5,000 0%
Grant Reimbursements and Other 24,540 33,764 59,221 26,000 (7,764) -23.0%
Lake Sawyer Parking Fee 14,499 16,000 11,573 12,000 (4,000) -25.0%
Central Service & GF Allocations 94,619 107,533 104,841 107,463 (70) -0.1%
Total Charges for Service (non-police) 149,931 167,297 185,253 158,013 (9,284) -5.5%
23
Black Diamond Final Budget 2012
Municipal Court revenue represents the City’s portion of fines and forfeits collected on citations
and other Municipal Court fees. This is always a difficult area to budget as these revenues are based on citations issued, court decisions and of course the defendant’s ability to pay. Traffic infractions represent more than half of the Court’s revenue.
Total Municipal Court Revenue 137,255 135,000 120,803 135,900 900 0.7%
Miscellaneous Revenue includes interest on investments and property and sales tax
proceeds prior to their distribution, as well as the sale of surplus equipment and other miscellaneous revenue sources. Interest income continues to be minimal due to extremely low interest rates.
Public Works Director (Parks & Cemetery)* 0.1 10,482 3,779 14,261
Subtotal Salary and Benefits 10.1 932,834 291,284 1,224,118
Maintenance and Operations 180,000
Total Staff and Building Costs 1,404,118
Code Enforcement 35,000
Subtotal Funding Agreement General Fund 932,834 291,284 1,439,118
Legal For MPD 34,000
Other MPD Reimbursables 600,000
Total MPD Funding - - 634,000
General Fund Funding Total Reimbursement 2,073,118
*Utilities - Public Works Director 0.90 94,345 34,007 128,352
Utilities - Admin Assistant III Public Works 1.00 56,450 29,765 86,215
Grand Total Funding Agreement 12.00 1,083,629 355,056 2,287,685
*PW Director assigned 10% to General Fund, 90% to Street and Utilities
2012 Final Budget
Funding Agreement
31
Black Diamond Final Budget 2012
Legislative This section of the General Fund operating budget provides funding for the legislative branch of the City government. The department consists of five Councilmembers who are elected to serve four-year terms at large, and represent all Black Diamond residents. The City Council accomplishes City business during regular meetings and workstudies each month. Councilmembers also serve on Council Committees which meet on an as-needed basis. Council duties include approving the annual budget, authorizing inter-local agreements and contracts and deliberating on and passing ordinances and resolutions to set City policies. Four Councilmembers receive a stipend of $160 per month, with the Mayor Pro Tem receiving $200 per month.
Legislative Department
Expenditures2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
Council Wages (4 Council & Mayor Pro 10,080 10,080 10,080 10,080 0%
Legislative Total 11,660 12,603 11,877 12,599 (4) -0.03%
Note: For 2010 Actuals, the Criminal Justice Fund (122) is included here
SNOW SCENE on RAILROAD AVE. Clearly visible buildings on the left are Murphy’s Shoe Shop, the Black Diamond Bakery, the meat
market, the lumber yard, and the Pacific Coast Railroad depot – now the Black Diamond Museum. Across the street, we have a hotel,
the post office (now Black Diamond Pizza & Deli), the Show Hall, and the Bussey residence. (Courtesy Black Diamond Historical Society)
32
Black Diamond Final Budget 2012
Executive Department This General Fund contains the Mayor’s budget. The Mayor is the Chief Executive Officer of Black Diamond and is directly elected by popular vote by the citizens of Black Diamond for a four-year term. Mayoral duties include overseeing City administration, presiding over all meetings of the Council, signing and enforcing all ordinances, appointing and removing appointed officials, signing contracts entered into by the City, and representing the City in meetings and events held outside of Black Diamond. The Mayor is paid a stipend of $1,000 per month. Other costs associated with the Mayor include communications, travel, training and other miscellaneous expenses.
Training & Workshop & Dues 335 700 205 500 (200) -28.6%
Executive Department Total 13,404 14,330 13,568 14,076 (254) -1.8%
Pictured here is a mailing envelope with the Pacific Coast Coal Company’s DIAMOND BRIQUETS logo, postmarked
December 1, 1934 – less than 5 years before BRIQUETVILLE’s demise. Each briquette made with
BLACK DIAMOND COAL was embossed with a small diamond brand.
(Courtesy Black Diamond Historical Society)
33
Black Diamond Final Budget 2012
Administration
Administration is part of the General Fund operating budget and provides funding for the overall management of the City of Black Diamond. This budget holds salary and benefits for the Assistant City Administrator, a position reimbursed 100% by the Funding Agreement. Because the Assistant City Administrator also serves as the City Clerk, non-salary expenditures associated with that position are located in the City Clerk’s budget. The City Administrator position is frozen in the 2012 budget, resulting in the salary and benefit savings.
Training, Dues and Memberships 3,500 1,750 (1,750) -50.0%
Insurance 2,749 2,938 2,938 3,232 294 10.0%
Miscellaneous 50 (50) -100%
City Administration Department Total 144,741 152,278 147,347 153,399 1,121 0.7%
Black Diamond Museum telephone switchboard: In 1933 there were five Black Diamond names and two digit phone numbers in the
telephone book, the BD Garage & Stage Co., Phone #44, High School, #21, H.M. McDowell (manager of the PCCC store), #51, Hospital,
#61, and Pacific Coast Coal Co. store, #31. (Courtesy Black Diamond Historical Society)
Position: 1.0 Assistant City Administrator Frozen and Unfunded: 1.0 City Administrator
34
Black Diamond Final Budget 2012
City Clerk The City Clerk Department is responsible for managing the City’s official records, including retention, archival and destruction, and processing all requests for public records; oversight of Council meetings, including agenda development and transcribing the official minutes; providing legal notices to the public regarding City business; coordinating elections; maintaining personnel files, interpretation of personnel policies and procedures, supporting the recruiting process and also maintaining and developing the City’s website. This department includes the Deputy City Clerk. The Deputy City Clerk is allocated 60% to the General Fund and 40% to Public Works funds. Also reflected in this budget are expenses for voter costs, code updates, advertising and other Clerk related expenditures. Budgets for office supplies and training for the Assistant City Administrator who also serves as the City Clerk are found in this section of the budget, while the salaries and benefits for that position are found in the Administration budget. 2011 Accomplishments
Continue development of the records management system for essential public records
Completed redesign of the City Clerk’s page on the website to allow for ease in information retrieval
Coordinated and hosted tri-city Council meeting with Covington and Maple Valley
Created policy regarding leave sharing
Enhanced public records request process including electronic distribution of requests to staff and clerk retention of disclosed documents
Created Commission roster to track expiring terms, current members and vacancies
City Clerk Department Total 73,345 69,539 69,005 75,308 5,769 8.3%
* Other 40% of wages and benefits are allocated to Utilities Position:
1.0 Deputy City Clerk
35
Black Diamond Final Budget 2012
Finance
The Finance Department is responsible for safeguarding the City's assets by insuring maximum utilization of revenues, providing financial support to City departments and recording and reporting accurate and timely financial information to the State, elected officials and to the citizens of Black Diamond.
This Department provides the services of financial planning and reporting, accounting, accounts receivable, accounts payable, payroll processing, cost accounting, business licensing, utility tax collections, cash and investment management and debt service. Finance prepares the Annual Budget, the Comprehensive Annual Financial Report, Capital Improvement Program, reports and monthly financial updates.
This department has a Finance Director and a Deputy Finance Director and a part time (75%) senior accountant position. The ¾ time position is allocated 60% to the General Fund and 40% to public works funds. The finance director and deputy finance director salaries and benefits are 100% reimbursed by the Funding Agreement. The decrease of $762 is partially due to the completion of the 2009 and 2010 State audit on the Black Diamond that occurs once every two years.
2011 Accomplishments
Received clean audit opinion on the 2009 – 2010 State Audit
Moved CIP Process to 1st half of year with adoption in in June/July
Made accounting changes to reclassify funds per GASB 54
Finance Department Total 256,561 282,167 273,882 281,405 (762) -0.3%
* Sr. Accountant is a 75% FTE & allocated 40% to Utilities
Positions: 1.0 Deputy Finance Director 1.0 Finance Director .75 Senior Accountant (60% to General Fund) 2.75 Total
36
Black Diamond Final Budget 2012
Information Services The City of Black Diamond’s Information Services Department is responsible for the procurement, administration and maintenance of the informational and telephone systems used by all of the City’s departments. This department has one full-time employee for which the salary and benefits are reimbursed 100% by the Funding Agreement. 2011 Accomplishments
Upgraded Police Department patrol cars from old-modems to Verizon service, in conjunction with traffic encryption server
Finalized secure connection for PD w/ WA State Access for Spillman Statelink technology
Worked with the Clerk’s Department on latest website redesign for City
Removed and instituted defense against a crippling mail-bomb virus we suffered
Integrated eMail archive server for PD/City
Became Cisco ASA firewall certified
Transitioned voice service for City to Comcast Digital and began the telephone system upgrade
Professional Services 330 5,000 1,633 4,000 (1,000) -20.0%
Telephone/dsl 400 341 200 (200) -50.0%
Lodging, Meals & Mileage 44 600 300 (300) -50.0%
Insurance 1,441 1,554 1,554 1,710 156 10.0%
Repairs and Maintenance 288 500 173 500 0%
Training and Workshops 2,000 3,477 2,000 0%
Miscellaneous and Memberships 26 125 13 150 25 20.0%
Information Technology Total 129,528 143,807 139,568 145,160 1,353 0.9% Position: 1.0 Information Services Manager
37
Black Diamond Final Budget 2012
Facilities Department The City of Black Diamond’s Facilities Department is responsible for the long term planning of the City’s building and equipment needs and to handle the daily needs of all departments in repair, replacement and installation of fixtures, furniture and equipment. This department has one full- time employee whose salary and benefits are 100% reimbursed by the Funding Agreement. The Capital Facilities Department provides for City Hall, Public Works land and building leases, and the associated utility and building costs. 100% of these costs are provided through the Funding Agreement.
Capital Facilities and Funding Maint. Total 248,693 278,739 278,734 279,821 1,082 0.4%
Position: 1.0 Facilities Coordinator
In about 1925, a Black Diamond resident used this toy wagon, now
on display at the museum, to deliver milk to community residents
door-to-door. Pulled by a dog, the wagon carried milk in five-gallon
cans. The milk was then distributed to each customer using a
dipper. (Courtesy Black Diamond Historical Society)
38
Black Diamond Final Budget 2012
Legal Department The Legal Department represents the Office of the City Attorney. The General Fund portion of the budget of the City Attorney generally includes providing civil legal service, preparing and review of ordinances and other legal documents to which the City is a party, maintaining up-to-date legal research materials including pending and adopted state legislation with municipal impact and personnel matters. A percentage of legal costs are shared with the Street and Utility Fund budgets. Kenyon Disend PLLC is currently contracted to provide legal counsel for the City. Chris Bacha serves as the City Attorney. The City Attorney also provides Black Diamond with representation on a myriad of issues, including but not limited to providing legal analysis on civil issues, property acquisitions, land use issues and comprehensive plan issues. These legal costs are included in other funds, capital projects or MPD budgets.
Legal Services Total 109,546 104,000 103,679 104,500 500 0.5%
*Legal Services are provided by prof. service contracts
This was the JONES HOTEL about 1919. This hotel was one of many in Black Diamond built to house the bachelor miners.
It was located at the center of what today is the Rainier View senior housing development,
just off 1st Avenue. (Courtesy Black Diamond Historical Society)
39
Black Diamond Final Budget 2012
Municipal Court The Black Diamond Municipal Court is a court of limited jurisdiction, managing a caseload of approximately 1,500 to 2,400 cases each year. These cases involve infractions, misdemeanors and gross misdemeanors. Other matters such as felony cases are filed and disposed of in King County Superior Court. Court is in session, and is open to the public the 2nd, 3rd and 4th Wednesday of each month. The Court office is open Monday through Friday from 8:30 a.m. to 5:00 p.m. Budget for the Court includes a full-time Court Administrator, one 50% time Court Clerk and contracted services provided by a judge, prosecutor and public defender. Budget is also needed for security and other miscellaneous expenses such as interpreters, office supplies, training and credit card fees.
Municipal Court Total 209,134 230,848 192,810 204,319 (26,529) -11.5% Positions: 1.0 Court Administrator .5 Court Clerk 1.5 Total
40
Black Diamond Final Budget 2012
Police Department The Black Diamond Police Department is currently operating with a chief, commander, an acting patrol sergeant and seven patrol officers. Two additional positions remain unfunded in 2012. The police department also has a full time records manager and a part-time records clerk. The 1.2% overall increase in the budget this year is primarily due to the police union contracted wage adjustments along with an increase in communication expenses.
The Black Diamond Police Department will strive to maintain the trust and confidence of our citizens through proactive policing and demonstration of our core values.
MISSION STATEMENT
The Black Diamond Police Department strives to maintain the trust and Confidence of our citizens through proactive policing and demonstration of our core values.
Our Values
Integrity
Committed to providing quality service by consistently holding ourselves to the highest moral and ethical principals
Professionalism
Committed to providing the community with exceptional law enforcement by developing our personnel through effective training and leadership
Excellence
Committed to providing innovative solutions to issues by working in partnership with our community
Teamwork
Committed to providing a quality work environment by promoting coordination, cooperation, and communication with our members
Fire Department The City of Black Diamond contracts with Mountain View/Black Diamond Fire Department, King County Fire District No. 44, for fire services. The department’s responsibilities include providing a minimum of two personnel on duty 24 hours a day, seven days a week in Black Diamond and providing rescue, fire suppression, fire prevention, fire marshal services, emergency medical services, disaster services, hazardous materials response , dispatch services, administrative services and public education activities to citizens. Fire investigation services are contracted through the King County Sheriff’s Department. The percent increase in the 2012 budget recognizes the cost of services agreed to in the 2008 Interlocal Agreement between the City and Fire District.
Fire Department Total 408,774 432,240 432,165 446,337 14,097 3.3%
2011 Fire Incidents by Type*
Fire 3
EMS/Rescue 199
Hazardous Condition 4
Service Call 27
Good Intent 8
False Call 12
Severe Weather 0
Other 1
Total 254
* Black Diamond only
Fire1.2%
EMS/Rescue78.3%
Hazardous Condition1.6%
Service Call10.6%
Good Intent3.1%
False Call4.7%
Severe Weather0.0%
Other0.4%
Fire Department Incidents by Percentage
45
Black Diamond Final Budget 2012
Animal Control expenditures include the payment to King County for animal control services.
Animal Control Expenditures2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
Animal Control Professional Services 16,025 15,663 9,762 (6,263) -39.1%
Total Animal Control Expenses 16,025 15,663 9,762 (6,263) -39.1%
Emergency Management expenditures go toward the purchase emergency supplies.
Emergency Management
Expenditures2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
Emergency Management Training 270
EMS MGMT Operating Supplies 5,000 233 5,000 0%
Total Emergency Management 5,000 502 5,000 0%
The OLD LAWSON Bowling Alley, 1911: Old Lawson was located across from Jones Lake near Old Lawson Rd.
(Courtesy Black Diamond Historical Society)
46
Black Diamond Final Budget 2012
Community Development budget provides funding for the City’s long-range planning and
land use and building permitting functions. The department also provides staffing to the City Planning Commission and performs code enforcement activities to address nuisances, code violations, and other issues. This section currently includes three full-time employees: a Director, Associate Planner, and a Permit Supervisor. The City has an interlocal agreement with the City of Covington for its staff to provide building permit and code enforcement functions. Currently, all salaries and benefits in this department are 100% reimbursed by the Funding Agreement, with the exception of building plan review and inspection services, which are funded through application fees. The remainder of expenses such as training, memberships, office supplies, and allocated costs are General Fund expenditures. Major 2011 Accomplishments
Master Planned Development Development Agreement process completed
Annual Comprehensive Plan amendment process completed
10-lot Kahne preliminary plat secured approval
Permit staff completed annual business license renewal process.
CD Admin Allocation 10,338 13,392 11,896 13,635 243 1.8%
Code Enforcement Total 34,102 43,563 28,409 49,240 5,677 13.0%
48
Black Diamond Final Budget 2012
Hearing Examiner Expenditure
Summary2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
Prof Serv-Hearing Examiner 5,000 5,000 0%
Prof Serv- Planning 2,245
Hearing Examiner Total 5,000 2,245 5,000 0% Positions: 1.0 Executive Director of Community Development 1.0 Associate Planner 1.0 Permit Center Supervisor 3.0 Total
Black Diamond City Limits
49
Black Diamond Final Budget 2012
Natural Resources functions to purchase, restore and maintain the City’s natural resources and
provide guidance in balancing the protection of the environment and a strong, vibrant economy. Inherent to the Natural Resources Department is significant overlap with the City of Black Diamond’s Parks, Recreation and Open Space Program. The Natural Resources Department has and will continue to provide back-up in the development of the City’s Comprehensive Parks, Recreation, Trails and Open Space Plan as components to this program fall under the responsibilities of this Department. Natural Resource Department responsibilities involve management of the City’s Transfer of Development Rights (TDR’s) Program and to help ensure the quality of life that residents of Black Diamond have come to expect. Environmental sensitivity is also part of the City’s vision for the future. The Natural Resources Director is the single full-time employee in this department, of which the salary and benefits are reimbursed 100% by the Funding Agreement.
Natural Resources Expenditures2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
Stewardship Wages (Natural Res Director) 98,238 103,515 101,831 103,515 0%
Recycling Program Grant 18,065 18,900 18,002 18,002 (898) -4.8%
PS Clean Air Assmt 2,236 2,190 2,219 2,300 110 5.0%
Memberships (2010 WIRA) 2,507 161
Printing Binding and other Miscellaneous 256 650 700 50 7.7%
Natural Resources Total 156,104 160,624 158,157 162,485 1,861 1.2% Position: 1.0 Stewardship/Parks Director
John Davies' Candy Store, built in 1905 and originally located on Baker Street, was a popular spot for young people, especially boys. After the store closed in 1935, the building was moved to the Morganville area of Roberts Drive. The historical society had hoped to preserve the building, but it was razed in September 2005. (Courtesy Black Diamond Historical Society)
50
Black Diamond Final Budget 2012
Economic Development provides a bridge between private and public sectors to assist with
the economic growth of the community in areas of job creation and retention through recruitment and expansion of businesses and developments. Economic Development Department responsibilities involve implementing strategies that will aid in business attraction. The goal is to increase the job base while maintaining the current jobs in Black Diamond, and to develop and maintain economic development related data and databases necessary for business recruitment. Economic Development also has the primary responsibility to develop and enhance partnerships with agencies, utilities, transportation, and other economic development allies. This department also manages land acquisitions and project planning for City owned development projects. This is a 100% Funding Agreement position.
Economic Development
Expenditure Summary2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
Economic Development Wages (Director) 97,152 102,372 100,404 102,372 0%
Office And Operating Supplies 222 1,100 20 300 (800) -72.7%
Communications 58 1,000 (1,000) -100%
Lodging, Meals & Mileage 122 1,900 336 1,900 0%
Lodging, Meals & Mileage Reimb 500 500 0%
Insurance 1,516 1,637 1,637 1,800 163 10.0%
Miscellaneous, Printing & Binding 450 450 0%
Training Workshops and Memberships 2,350 99 2,350 0%
Economic Development Total 131,251 142,578 135,143 143,156 578 0.4% Position: 1.0 Executive Director of Economic Development and Engineering Services
The small one story, wood frame Miner's Cabin, located on land owned by Welsh miner Timothy Morgan, is said to have been built by two Italian miners. They lived in the house until the 1920s, when Morganville became the center of union activity during bitter labor
disputes. This photo was taken in 1939, the house has been restored and still sits on this spot, next to City Hall. (Courtesy of the Black Diamond Historical Society)
51
Black Diamond Final Budget 2012
Parks Department functions include the maintenance of the boat launch and associated park
area on Lake Sawyer, Eagle Creek Park including playground equipment and landscape, the downtown park, north of the Black Diamond Elementary School, including a basketball court, tennis court, playground equipment, skate board park and picnic tables, and a BMX track is provided south of the police station. Two passive parks include the Union Stump historical marker and the Coal Car Triangle historical marker. The City also has a 168 acre undeveloped park at the south end of Lake Sawyer that has a gravel parking lot and a trail for access. The City provides insurance and all utilities for the Museum. And also provides a site and minimal grounds maintenance for the Recreation Center of which the Community Center operates. In total, the City has 173.5 acres of park property.
The Parks Department is maintained by the utility crew and their wages are allocated 8% to this area. The superintendent and PW Director are also allocated 8% here. Parks allocations total 35% of a full time employee in 2012.
Parks and Recreation Expenditure
Summary2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
Parks Wages (8% Util. Sal & 2% of Admin) * 25,699 26,276 26,553 26,276 0%
Venvue Pay Station 1,618 1,800 1,618 1,710 (90) -5.0%
Park Signage 37 600 18 300 (300) -50.0%
Miscellaneous and Security 143 100 420 308 208 208.0%
Merchant Card Service Fees 371 400 313 185 (215) -53.8%
Parks Equipment 125 2,250 2,245 (2,250) -100%
Parks Subtotal 52,701 58,981 57,740 56,920 (2,061) -3.5%
Museum and Community Center
Museum Insurance 976 1,086 1,086 1,195 109 10.0%
Museum Electric/Gas 3,376 5,000 3,924 5,100 100 2.0%
Museum Water/Sewer/Storm 1,110 1,300 1,364 1,300 0%
Community Event Supplies 1,768 3,500 212 2,000 (1,500) -42.9%
Community Center Insurance 1,394 1,444 1,612 1,249 (195) -13.5%
Community Gym Insurance 1,135 1,135 1,249 114 100%
Comm Center Water/Sewer/Storm 273 300 309 310 10 3.3%
Museum and Community Center Subtotal 8,896 13,765 9,641 12,403 (1,362) -9.9%
Parks and Recreation Total 61,597 72,746 67,381 69,323 (3,423) -4.7%
* Other portion of salaries are allocated to utilities & cemetery
52
Black Diamond Final Budget 2012
Positions
General
Fund Cemetery Parks
Admin Assistant 1 0.10 0.10
Support Staff Total 0.10 0.10
Public Works Director - Funding Agreement 0.10 0.02 0.08
Funding - Reimbursement for Utilities 0.10 0.02 0.08
Utilities Supervisor 0.10 0.02 0.08
Utility Worker 0.10 0.02 0.08
Utilities Operator 0.10 0.02 0.08
Seasonal Help for Parks 0.04 0.01 0.03
Public Works Total 0.44 0.07 0.27
Grand Total Budget Positions 0.54 0.19 0.35
2011 Employee Allocation - Parks
The BLACK DIAMOND COMPANY was located in the building that is now home to Baker Street Books.
53
Black Diamond Final Budget 2012
Cemetery Department functions provide operations and maintenance of the historic Black
Diamond Cemetery. This involves coordinating burials, sale of cemetery plots, providing physical burial services and maintaining the cemetery grounds. The burial fees cover the costs associated with the burial. The cemetery is supported by the General Fund. The Public Works crew mows and trims the cemetery once a week during the heavy grass growing months and once every two weeks for the drier months during the growing season. Public Works employees are allocated a portion of their salary and benefit costs to the Cemetery. Cemetery allocations total 19% of a full time employee in 2012.
Cemetery Total 15,834 17,533 15,497 17,277 (256) -1.5%
* Other portion of salaries are allocated to utilities & parks
Positions
General
Fund Cemetery Parks
Admin Assistant 1 0.10 0.10
Support Staff Total 0.10 0.10
Public Works Director - Funding Agreement 0.10 0.02 0.08
Funding - Reimbursement for Utilities 0.10 0.02 0.08
Utilities Supervisor 0.10 0.02 0.08
Utility Worker 0.10 0.02 0.08
Utilities Operator 0.10 0.02 0.08
Seasonal Help for Parks 0.04 0.01 0.03
Public Works Total 0.44 0.07 0.27
Grand Total Budget Positions 0.54 0.19 0.35
2011 Employee Allocation - Cemetery
54
Black Diamond Final Budget 2012
Central Services provide the budget that captures shared costs for various departments,
including office and operating supplies, software maintenance costs, copier costs, postage, advertising, utilities, custodial services, building insurance, credit card and banking fees. Costs that benefit a variety of departments are paid from Central Services and then allocated through cost allocations. Employee recognition budget includes employee and elected official recognition, awards and an annual banquet.
Central Services Expenditures2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
Office and Operating Supplies 4,887 6,925 4,822 5,700 (1,225) -17.7%
Telephone and Postage 3,144 6,325 3,720 3,925 (2,400) -37.9%
Memberships 5,767 6,600 5,641 5,875 (725) -11.0%
Employee recognition and celebration 399 1,100 652 900 (200) -18.2%
Vehicle Repairs and Maintenance 878 500 1,062 500 0%
Software and Copier Maintenance 3,510 4,350 4,310 4,350 0%
Retreat-Travel & Training 1,000 200 800 (200) -20.0%
Advertising 1,010 1,200 436 (1,200) -100.0%
Insurance Pooled Vehicles 2,100 2,174 4,251 977 (1,197) -55.1%
KC Mental Health 1,044 1,000 1,012 1,100 100 10.0%
Central Service Expenditures 33,491 38,974 33,653 34,727 (4,247) -10.9%
Years ago the RAILROAD DEPOT was the most popular place in town and the daily arrival of the limited was an event seldom missed by the population. (Pacific Coast Bulletin, April 23, 1925) To the left in this image are the men-folk of the town leaning on the 'loafing rail'. Women had to walk on the opposite side of the street and dare not look at the men. (Courtesy of the Black Diamond Historical Society)
55
Black Diamond Final Budget 2012
Funding Agreement, Studies, Deposits and Interfund Transfer expenditures in
the General Fund budget includes one-time only costs, reimbursable studies and legal costs in the Funding Agreement, and in prior years, studies with other parties. The decrease is due to completion of EIS and SEPA projects in 2010.
Funding Agreement Expenditures
(includes deposits and pass-thru)2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
MPDs, EIS and SEPA 704,708 695,175 591,175 634,000 (61,175) -8.8%
One time Legal Services 35,000 (35,000) -100%
Other Projects and Pass-thru 3,231
Funding Agreement Total 707,939 730,175 591,175 634,000 (96,175) -13.2%
Total Beginning Cash and Investments 460,424 335,595 921,214 457,333 121,738 36.3%
Grand Total General Fund Expenditures 5,085,067 5,400,029 5,606,765 5,455,415 55,386 1.0%
This 1915 photograph features the old masonic hall in Black Diamond (center). The photographer is looking up Baker Street toward 3rd Avenue (SR 169). Black Diamond Elementary would be on your immediate left and the “new” masonic hall (ca 1970) is on the corner of 3rd, same as 1915. (courtesy Black Diamond Historical Society)
56
Special Revenue Funds
This photo is from the 1949 LABOR DAY celebration. On the left is ROY DARBY, team manager. The bat boy on the right is JIM
HAWTHORNE. The boy on the far right is Roy Darby, Jr., and next to Roy is Rick Darby. Black Diamond’s festive celebration was originally held on July 4th until it was changed to Labor Day in 1947. (courtesy of Black Diamond Historical Society)
Black Diamond Final Budget 2012
Street Department responsibilities include maintaining, planning and upgrading public streets
and sidewalks. Major activities in the Street Department include maintaining the street signs and pavement markings, snow plowing, street sanding during ice conditions, roadside mowing and brushing, pavement maintenance, roadway construction, managing the right of way, providing street lighting and signal maintenance and street network planning and review. Street revenue from gas tax is the primary source of funds for the Street Department. Falling revenues have forced the Street Department to use real estate excise tax funding normally reserved for capital projects and street capital projects, to fill in the short fall in the street maintenance budget.
101 Street Fund2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
REVENUE
Diverted County Road Prop Tax 5,349 6,200 6,200 (6,200) -100%
Right of Way Permit 7,220 5,000 3,000 3,000 (2,000) -40.0%
Total Street Fund Uses 511,007 469,192 481,889 443,353 (25,839) -5.5%
Street Funded PositionsFunding
Agreement
General
Fund
Street
Fund
Water
Fund
Waste water
Fund
Storm water
Fund
Admin Assistant I 0.10 0.3 0.3 0.3
Deputy City Clerk 0.60 0.04 0.12 0.12 0.12
Senior Accountant 0.45 0.03 0.09 0.09 0.09
Support Staff Total 1.15 0.07 0.51 0.51 0.51
Public Works Director - Funding 0.10 0.15 0.25 0.25 0.25
Admin Assistant III- Funding 0.25 0.25 0.25 0.25
Total Funding 2.00 -0.10 -0.4 -0.5 -0.5 -0.5
Utilities Supervisor 0.10 0.15 0.25 0.25 0.25
Utility Worker 0.10 0.15 0.25 0.25 0.25
Utilities Operator 0.10 0.15 0.25 0.25 0.25
Seasonal Help for Parks 0.04 0.06 0.10 0.10 0.10
Public Works Total 2.00 0.34 0.51 0.85 0.85 0.85
Total Budget Positions (FTE's) 2.00 1.49 0.58 1.36 1.36 1.36
2011 Employee Allocations by Funding Source
Snow’s on the ground again in BD so this photo of HOLDEN’S Photograph Studio – located on a triangular
plot at the corner of Railroad Ave. and Morgan St. Many early family portraits originated at this little studio.
In later years the building was used as a shoe shop, real estate office, and meeting place
for the town council. (1984 calendar series Courtesy Black Diamond Historical Society)
58
Black Diamond Final Budget 2012
Real Estate Excise Tax I is authorized by Washington State RCW 8245.010 and can be used
for capital projects. Cities must use these funds as long as they are identified in a capital improvement plan. Specifically, one quarter percent of the real estate excise tax is collected, and then transferred to Fund 310 to be used for general government capital projects. Midyear in 2011 the Washington State Legislature authorized for five years the usage of up to $100,000 of REET monies for the maintenance of capital assets. Detail for General Government projects in 2012 are on the next page.
Total REET I 104 Fund Uses 758,161 503,086 508,014 454,226 (48,860) -9.7%
This photo shows an early Black Diamond Fourth of July celebration, probably around 1910, taken in front of the Black Diamond School.
The lady standing in the center of the wagon is the "Goddess of Liberty/Queen." (Courtesy of the Black Diamond Historical Society)
59
Black Diamond Final Budget 2012
General Government Capital Fund 310 provides the 2012 budget for the General
Government portion of the Capital Improvement Program 2012 – 2017. For more detail on these projects please refer to the Capital Improvement Plan summary toward the end of this document.
Shoreline Master Plan 26,804 20,479 17,450 10,000 (10,479) -51.2%
Park Signage 865 16,635 121 (16,635) -100%
Tree Mitigation 1,058 4,941 2,632 5,000 59 1.2%
Prior year park projects 27,690
Council Chambers, Police & Court Building 11,124 132,590 108,241 (132,590) -100%
Police Technology & other 15,876 13,261 5,866 8,000 (5,261) -39.7%
Police record system loan payment - principal 40,000 40,000 40,000 40,000 0%
Police record system loan - interest 800 2,000 1,500 2,000 0%
Police records, phones & firearms 18,668
Fire Impact Fees & CF Henderson/Young 14,620 14,620 (14,620) -100%
Fire Station 99 study & design 5,000 (5,000) -100%
General Government technology 21,844 34,155 32,834 20,000 (14,155) -41.4%
Grant Matching 14,384 76,878 769 10,000 (66,878) -87.0%
Future Facility Site design & analysis 15,000 35,000 20,000 133.3%
Impact Study fees 65,380 (65,380) -100%
Way Finding Signs 24,000 (24,000) -100%
Subtotal General Govt Capital Projects 189,088 584,034 317,716 458,000 (126,034) -21.6%
Ending Cash & Investments 310,165 250,305
Total 310 Gen Govt Capital Fund Uses 499,253 584,034 568,021 458,000 (126,034) -21.6%
* Note that fire and police vehicles and equipment are funded out of the 510 Fund
60
Black Diamond Final Budget 2012
Real Estate Excise Tax II authorized by RCW 8245.010 can be used for capital projects. This
part of the real estate excise tax may only be levied by cities that plan under the Growth Management Act. Specifically, one quarter percent of the real estate excise tax is to be used for public works projects for planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets, roads, highways, sidewalks, street and road lighting systems, traffic signals, bridges, domestic water systems, storm and sanitary sewer systems, planning, construction, reconstruction, repair, rehabilitation, or improvement of parks. Midyear in 2011 the Washington State Legislature authorized for five years the usage of up to $100,000 of REET monies for the maintenance of capital assets. REET II monies in Black Diamond are transferred to Fund 320 for Street and Public Works capital projects. For detailed projects, see the 320 Fund section on the next page.
Total REET II Fund Uses 867,274 577,491 580,354 570,625 (6,866) -1.2%
61
Black Diamond Final Budget 2012
Public Works Capital Fund 320 provides the 2012 budget for the Public Works portion of
the Capital Improvement Plan for year 2012 - 2017. For more detail on these projects please refer to the Capital Improvement Plan summary toward the end of this document.
320 REET II Public Works Capital
Projects2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
REVENUE
Transfers Street Fund 20,000 (17,224) (33,463) 17,224 -100%
Transfers REET II 323,283 6,330 22,569 168,782 162,452 2566.4%
Total 510 Equip. Fund Sources 262,781 328,551 328,237 269,670 (58,881) -17.9%
The United Mine Workers Local 2257
dedicated its new town, Morganville,
on Sunday, April 2, 1922. When
miners went on strike March 15,
1921, the Pacific Coast Coal Company
ordered members of the Local to
move out of company houses in
Black Diamond. Timothy Morgan, a
nearby farmer, offered about 16
acres to the striking miners. The
Union provided the lumber and the
labor to build about 200 temporary
houses in just 3 months, some of
which still exist along Union and
Morgan Drives. (Courtesy Black
Diamond Historical Society)
64
Utility Funds
On January 21, 1888, the CEDAR MOUNTAIN post office opened. Cedar Mountain was near the former New Black
Diamond Mine – also known as INDIAN (see map). The PACIFIC COAST RAILROAD, which served Cedar Mountain,
took over operations from the Columbia & Puget Sound RR in 1916. At that time the main lines, branches,
and sidings were just over 55 miles. (Courtesy Black Diamond Historical Society)
Black Diamond Final Budget 2012
Water Department 401 services provide safe high quality reliable drinking water to the
residents of Black Diamond within the City water service area. The residents who live around Lake Sawyer are served by the Covington Water District. The water utility is responsible for the operation and maintenance of the City’s springs, tanks, water treatment, pump stations, water mains, fire hydrants and meters. The monthly water bill revenue is used to pay for the operation and maintenance of the existing water system. Water use has gone down in recent years and the city has not been able to collect sufficient revenues to meet the needs of the utility. The water utility has not been able to set aside any operations revenue toward pipe replacement in the last four years. The fuel, tools, professional services, training, and general service costs are distributed equitably between the Public Works funds.
401 Water Fund2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
REVENUE
Water User Charges 389,262 454,000 426,263 454,000 0%
Water Meter & Setting 3,930 3,929 4,000 70 100%
Reimbursible Water Repairs 528 600 226 100 (500) -83.3%
Water Availibility Staff Fee 1,100 600 600 100%
Water Late Fees/Name Change Charge 15,838 16,000 16,154 15,000 (1,000) -6.3%
Subtotal Water Operating Revenue 405,627 474,530 447,673 473,700 (830) -0.2%
Total net Water fund 2010 Debt Service $114,760 $125,000 $239,760
*Black diamond hold a letter of credit from Palmer Coking for their balance owing of $1,230,500 of PWTF Loan. Thirteen payments of Approximately $101,000.
**Black Diamond holds a letter of credit from BD Partners for the $1,125,460 balance owing To Tacoma Water. Two Payments of Princpal & Interest.
"Buy a farm -- a ranch -- a few acres for a country home -- a summer resort and outing site on lake or stream -- or a camping and outing site for your own use. Prices range from $50.00 per acre up, according to location and soil. Can you beat it?," claims the same 1921 Pacific Coast Company brochure. (Courtesy Black
Diamond Historical Society)
67
Black Diamond Final Budget 2012
WSSFA Funding 402 (Water Supply Facility Funding Agreement) holds the budget for
implementation of various water source, storage, springs rehabilitation and water transmission projects, funded by major property owners within the city of Black Diamond according to the Water Supply and facilities Funding Agreements. It is anticipated that the Springs project and some of the transmission mains will get started this year.
Total WSSFA Fund Uses 68,073 168,881 33,261 422,800 253,919 150.4%
The Show Hall is the larger building to the far right of Koerner's Drug. It was built in the early 1890s as a community hall; redwood
timbers brought up from California were used in its construction. The Show Hall was torn down in the late 1960s.
(Courtesy Black Diamond Historical Society)
68
Black Diamond Final Budget 2012
Water Capital Fund 404 projects are part of the six year Capital Improvement Program Black
Diamond adopts each year. Water related projects are included here. This section includes the budget for those Water Capital project identified in the CIP for 2012. The City collects capital facility charges from new customers when they connect to the water system to cover the cost of new capacity adding project and upgrades to the existing water system and to cover debt service for the acquisition of water supply. Very little capital facility funds have been collected in recent years because of very little growth in the City of Black Diamond. Net revenue from customer charges after paying for regular maintenance and operations are to cover the cost of system replacement projects in this fund. However the water operations fund has not been able to generate net revenue in order to set aside funds for repair or replacement projects.
404 Water Capital Fund2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
REVENUE
LGIP Investment Interest 1,458 1,000 919 1,000 0%
Water Connection Charges 23,906 23,906 20,000 (3,906) 0%
CDBG Grant 5th Ave Water Main 175,000 175,000 100%
Loan from Wastewater Reserve for meters 230,000
Subtotal Water Capital Fund Revenue 231,458 24,906 24,825 196,000 171,094 687.0%
Total Water Capital Fund Uses 860,467 805,342 605,261 682,240 (123,102) -15.3%
69
Black Diamond Final Budget 2012
Wastewater Department 407 services provide for the planning, operation and
maintenance of the sewer collection system, local customer service, billing and collection. This department also provides for the transmission and treatment of sewage by contract with King County Wastewater Division. Currently the revenue collected by the sewer utility is not covering the cost of the operations, maintenance, administration and services provided. Consequently the City has had to subsidize the Wastewater Fund with cash reserves. The fuel, tools, professional services, training, and general service costs are distributed equitably between the Public Works funds. Public Works and support staff area allocated an equitable percentage of their costs to the Wastewater department.
407 Wastewater Fund2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
REVENUE
Operating Revenue
Wastewater User Charges 597,817 650,402 622,521 650,000 (402) -0.1%
Total Wastewater Fund Uses 802,960 870,369 833,412 864,957 (5,412) -0.6%
Wastewater Funded PositionsFunding
Agreement
General
Fund
Street
Fund
Water
Fund
Waste water
Fund
Storm water
Fund
Admin Assistant I 0.10 0.3 0.3 0.3
Deputy City Clerk 0.60 0.04 0.12 0.12 0.12
Senior Accountant 0.45 0.03 0.09 0.09 0.09
Support Staff Total 1.15 0.07 0.51 0.51 0.51
Public Works Director - Funding 0.10 0.15 0.25 0.25 0.25
Admin Assistant III- Funding 0.25 0.25 0.25 0.25
Total Funding 2.00 -0.10 -0.4 -0.5 -0.5 -0.5
Utilities Supervisor 0.10 0.15 0.25 0.25 0.25
Utility Worker 0.10 0.15 0.25 0.25 0.25
Utilities Operator 0.10 0.15 0.25 0.25 0.25
Seasonal Help for Parks 0.04 0.06 0.10 0.10 0.10
Public Works Total 2.00 0.34 0.51 0.85 0.85 0.85
Total Budget Positions (FTE's) 2.00 1.49 0.58 1.36 1.36 1.36
2012 Employee Allocations by Funding Source
71
Black Diamond Final Budget 2012
Wastewater Capital Fund 408 services include the budget for those Wastewater Capital
projects identified in the most recent Capital Improvement Plan. City staff is continuing with the infiltration and inflow investigation and repairs as staff time allows. The City will also be rehabilitating the Morganville wastewater pump station in 2012.
Total Wastewater Capital Fund Uses 1,069,846 872,857 859,996 852,245 (20,612) -2.4%
72
Black Diamond Final Budget 2012
Stormwater Fund 410 utility services help protect the natural environment from the impacts
of stormwater runoff by property maintaining the City stormwater system and implementing the City’s Stormwater Management Plan according to Department of Ecology stormwater permit requirements. The fuel, tools, professional services, training and general service cost allocations are distributed equitably between all of the public works funds. The King County water quality expenditure is for monitoring and testing as required by the Department of Ecology for Lake Sawyer. The WIRA 9 expense is Black Diamond’s share of the Water Quality project expense providing the City of Black Diamond protection from Endangered Species Act Claims. Public Works and support staff are allocated an equitable percentage of their salaries and benefits to the Stormwater department.
Total Stormwater Fund Uses (non-capital) 355,421 363,285 359,601 390,340 27,055 7.4%
Stormwater Funded PositionsFunding
Agreement
General
Fund
Street
Fund
Water
Fund
Waste water
Fund
Storm water
Fund
Admin Assistant I 0.10 0.3 0.3 0.3
Deputy City Clerk 0.60 0.04 0.12 0.12 0.12
Senior Accountant 0.45 0.03 0.09 0.09 0.09
Support Staff Total 1.15 0.07 0.51 0.51 0.51
Public Works Director - Funding 0.10 0.15 0.25 0.25 0.25
Admin Assistant III- Funding 0.25 0.25 0.25 0.25
Total Funding 2.00 -0.10 -0.4 -0.5 -0.5 -0.5
Utilities Supervisor 0.10 0.15 0.25 0.25 0.25
Utility Worker 0.10 0.15 0.25 0.25 0.25
Utilities Operator 0.10 0.15 0.25 0.25 0.25
Seasonal Help for Parks 0.04 0.06 0.10 0.10 0.10
Public Works Total 2.00 0.34 0.51 0.85 0.85 0.85
Total Budget Positions (FTE's) 2.00 1.49 0.58 1.36 1.36 1.36
2012 Employee Allocations by Funding Source
74
Black Diamond Final Budget 2012
Stormwater Capital Fund 410 services provide the City with stormwater improvement
projects. The City received a Department of Ecology grant of $81,000 in 2011/2012. Some of these funds are being used to make improvements at the Public Works facility south of Lawson Street.
410 Stormwater Capital Fund2010
Actual
2011
Amended
Budget
2011
Actual
2012
Final
Budget
11 to 12
Budget
Change
% Budget
Change
REVENUE
Department of Ecology Grant #1 22,047 24,717 27,953 (24,717) -100%
Department of Ecology Grant #2 81,000 500 70,000 (11,000) -13.6%
Transfer from Operating - Future Use 8,000 8,000 100%
Alternate Site Study Reimburse 24,886 (24,886) -100%
Total Stormwater Capital Revenue 22,047 130,603 28,453 78,000 (52,603) -40.3%
Total Stormwater Capital Sources 22,047 127,367 25,216 78,000 (49,367) -38.8%
EXPENDITURES
Stormwater Management Program 15,974
Catch Basin Cleaning 9,310
Dept of Ecology Grant #1 14,481 18,910 (14,481) -100%
Dept of Ecology Grant #1 GPS 7,000 5,807 (7,000) -100%
Dept of Ecology Grant #2 81,000 500 70,000 (11,000) -13.6%
Alternate Site Study 24,886 (24,886) -100%
Future Use Projects 8,000
Total Stormwater Capital Expenditures 25,283 127,367 25,216 78,000 (49,367) -38.8%
Ending Cash & Investments (3,260)
Total Stormwater Capital Uses 22,023 127,367 25,216 78,000 (49,367) -38.8%
75
Capital Funds
Black Diamond Final Budget 2012
Capital Improvement Program 2012 – 2017
What is the Capital Improvement Program?
A Capital Improvement Program (CIP) is a roadmap that provides direction and guidance for carefully planning and managing Black Diamond’s capital and infrastructure assets. It is an investment in the future of our community.
This document presents the proposed plan for major public facility improvements that will be implemented over the next six fiscal years. The projects included in the fiscal 2012-2017 CIP are consistent with the City Council’s priorities and address the needs for the acquisition, rehabilitation and expansion of the City’s infrastructure and capital assets.
The City of Black Diamond Capital Improvement Program (CIP) addresses the growing needs of the City and enhances the quality of life through major public improvement projects.
Capital Projects are listed in the CIP by number, according to each major program area. For each project there is an estimated start and completion date that has been projected by the city department in charge of the improvement. The CIP also shows the total cost of the project and the amount allocated to the project for each year of the plan. Identifying capital projects and their anticipated funding sources assists in the planning and scheduling of finances for projects and the manpower needed to plan, design, and construct the projects.
Examples of projects in Black Diamond’s six-year CIP include street rehabilitation, water projects, wastewater facilities, park improvements, a fire station and equipment, police capital needs, and public building construction and improvement. Land purchases are also included in CIP planning since it is considered a capital asset.
These projects are usually long-term in nature (over one year) to complete and are frequently financed over a period of time. Typically, a CIP project has a dollar amount over $10,000.
How are projects in the Capital Improvement Program paid for?
The Six-Year CIP is a format by which the City uses to review the funding of desired capital improvements that compete for scarce financial resources. Generally, funding for capital improvements is provided through Real Estate Excise Tax revenue (REET), capital reserves, public trust fund loans, grants, impact fees and developer funding.
Types of Capital Projects
Capital projects are essential to the delivery of many of the City’s core services. The capital projects in each major department are described below.
Transportation The road system in Black Diamond is a vital infrastructure to city residents, visitors and commuters. This infrastructure includes roads, bridges, bike lanes and sidewalks. The responsibility for the funding and construction of transportation infrastructure is usually shared with
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Black Diamond Final Budget 2012 developers in the form of impact fees, as new development has need for additional transportation improvements. A good deal of funding for street improvement comes from Real Estate Excise Taxes.
Parks and Recreation There are regional and local parks in Black Diamond as well as bike and hiking trails, a skate park and a BMX Course. Outdoor enthusiasts choose to live in Black Diamond for the natural beauty of the surroundings and sporting opportunities. Park improvements are primarily financed by Real Estate Excise Taxes, grants and developer contributions.
Utilities The City provides water, sewer and stormwater utility services to residents and businesses. Capital Facilities include sewer treatment facilities, transmission systems and storm water detention facilities. Developers contribute to these projects, as growth requires infrastructure expansion. Capital reserves, grants, loans and Real Estate Excise Taxes also provide funding for utilities in Black Diamond.
Public Safety Capital facilities and equipment are required to deliver core City services of Police and Fire. These facilities include the fire and police stations, vehicles and major equipment. Funding for these capital projects largely comes from Real Estate Excise Taxes and reserves.
General Capital City is responsible for funding the construction and maintenance of city buildings and facilities. Included are technological capital projects that provide better services and communication at the City. These capital costs are largely funded through Real Estate Excise Taxes.
Growth Management Act and Land Use Policies
Comprehensive planning is required in Washington State since the Growth Management Act (GMA) was adopted by the legislature in 1990. The objective of the Act is to limit sprawl, protect sensitive areas and promote efficient and effective delivery of public services by concentrating population, industry and public services in urban areas. The City is anticipating two development areas in Black Diamond, The Villages and Lawson Hills. These planned developments have a huge impact on the City’s Capital Improvement Program, as up to 6,000 new homes may be built eventually in those new neighborhoods.
Level of Service
The number and type of capital facilities needed to serve Black Diamond is directly related to the level of public service provided. The level of service is established by City Council and the City’s Comprehensive Plan.
Maintenance and Funding Constraints
Once completed and placed in service, capital facilities must be maintained. Funding for the maintenance of capital projects for City Utilities are funded with user fees in the respective operating budgets. Maintenance funding for projects are funded through current operations, not the capital budget. For that reason the availability of funding for future maintenance must be considered when preparing the capital budget.
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Black Diamond Final Budget 2012 Development and Approval Process
The Capital Improvement Plan is updated annually. Each year individual projects are submitted by department directors. They use a template provided by Finance staff. These requests include an update of current projects and projections on new projects and anticipated costs. Each project must have specific funding sources identified. The Mayor, Finance Director and Management meet to balance projects to available funding. After several Council Committee meetings, workstudy sessions and a public hearing are held, the proposed plan is brought before Council for approval. The Capital Improvement Calendar for 2011 – 2016 is part of this document in the appendix section.
Please refer to the City’s Website Finance section for the complete Capital Improvement Plan 2012 – 2017.
The bus pictured, believed to be a 1916 model, was used by the Black Diamond School District No. 190 into the 1930s.
(Courtesy Black Diamond Historical Society)
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Departments
Total $
Project 2012 2013 2014 2015 2016 2017
Street Department 16,328,782 268,782 580,000 700,000 2,320,000 10,730,000 1,730,000
Water Department 4,995,000 495,000 1,900,000 1,800,000 100,000 700,000
Parks and Recreation 5,074,000 353,000 43,000 55,000 958,000 785,000 2,880,000
Fire Department 5,012,776 94,500 365,000 1,099,000 345,000 3,109,276
Wastewater Department 1,750,000 110,000 30,000 80,000 300,000 1,110,000 120,000
Stormwater Department 1,070,000 70,000 300,000 700,000
Police Department 480,700 48,000 58,300 112,000 109,400 88,000 65,000
City Facilities and Administration 155,000 55,000 20,000 20,000 20,000 20,000 20,000
TOTAL Project COSTS $34,866,258 $1,424,282 $3,066,300 $4,166,000 $4,407,400 $13,178,000 $8,624,276
Total Summary by Department
Capital Improvement Plan 2012 - 2017
Total CIP: $34,866,258
Streets $16,328,782 46.8%
Parks $5,074,000 14.6%
Water $4,995,000 14.3%
Stormwater $1,070,000 3.1%
Police $480,700 1.4%Fire $5,012,776 14.4%
City Facilities/Admin $155,000 0.4%
Wastewater 1,750,000 5.0%
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Departments
Total $
Project2012 2013 2014 2015 2016 2017
Street Projects 16,328,782 268,782 580,000 700,000 2,320,000 10,730,000 1,730,000
Water Projects 4,995,000 495,000 1,900,000 1,800,000 100,000 700,000
Population Base 4,060 4,077 4,239 4,536 4,971 5,514
Growth Increase (2.7 people per new household) 27 162 297 435 543 775
TOTAL POPULATION 4,087 4,239 4,536 4,971 5,514 6,289
2013 2014 2015 2016 2017
2011 REET I
Budgeted &
Funded
REET I ANALYSIS SUMMARY (Fund 310) Capital Improvement Plan 2012 - 2017
2012-2017
Summary
Total
2012
Capital Plan 2012 - 2017
Capital Plan 2012 - 2017
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Appendix
This train car visited BD often, used to render aid during emergencies and disasters, as well as an
instruction car for frequent safety classes. Note the ancient gas masks being modeled by a couple of the instructors. (Courtesy Black Diamond Historical Society)
Black Diamond Final Budget 2012
ORDINANCE NO. 11-972 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BLACK DIAMOND, KING COUNTY, WASHINGTON, ADOPTING THE BUDGET FOR CALENDAR YEAR 2012
WHEREAS, the Preliminary Budget was submitted to the City Council by the Mayor on November 2, 2011; and WHEREAS, the City Council held public hearings on November 22, 2011, and December 1, 2011 and workstudies on September 29, 2011, October 12, 2011, and October 27, 2011, and WHEREAS, a copy of the Budget was on file with the City Clerk for examination by the public during the time it was being considered by the City Council; now, therefore, THE CITY COUNCIL OF THE CITY OF BLACK DIAMOND, KING COUNTY, WASHINGTON, ORDAINS AS FOLLOWS: Section 1. The annual budget of the City of Black Diamond for the 2012 calendar year, a copy of which is on file with the City Clerk, is hereby adopted by reference as the annual budget for the City of Black Diamond for calendar year 2012. Section 2. The total estimated revenue from all sources and expenditures by fund as set forth in the 2012 budget document adopted by reference, are as follows:
Fund # Fund Name
Estimated
Revenues
Estimated
Expenses
001 General Fund 5,455,415 5,455,415
101 Street Fund 443,353 443,353
104 REET I Fund - General Government 454,226 454,226
105 REET II Fund - Street Projects 570,625 570,625
310 Capital Fund - General Government 458,000 458,000
320 Capital Fund - Street Projects 288,782 288,782
401 Water Fund 1,490,874 1,490,874
402 Water Capital Facility Fund 422,800 422,800
404 Water Capital Fund 682,240 682,240
407 Wastewater Fund 864,957 864,957
408 Wastewater Capital Fund 852,245 852,245
410 Stormwater Fund 468,340 468,340
510 Equipment Reserves Fund 269,670 269,670
Total 12,721,527$ 12,721,527$
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City of Black Diamond
Financial Management Policies Per Resolution 08-560
Background and Purpose
Financial policies provide guidelines for City of Black Diamond’s leaders to ensure sound decision-making that safeguards core services while moving the community forward to achieve its vision. Good financial management ensures the City is able to withstand economic fluctuations, maintain focus on the entire financial picture, and adjust to the changing service needs of the community of Black Diamond. This policy incorporates past financial practices in defining the current policies to be used by the City to meet its obligations and operate in a financially prudent manner. These policies have been established to provide general fiscal guidelines and are intended to provide sound direction in the management of the City’s financial affairs.
Operating Budget Policies
General budget policies ensure service levels are reasonable and attainable and that budget documents detailing revenues and expenditures accurately reflect Council and community goals. The City of Black Diamond budget procedures are in compliance with the Revised Code of Washington, Chapter 35A.33. The City budgets annually on the calendar year beginning January 1st and Ending December 31st. The City Council shall adopt the budget by Ordinance at the fund level. Amendments to the budget that change fund totals will be adopted by the Council through an Ordinance, which is usually done mid-year and year-end. Citizen Involvement Citizen involvement shall be encouraged in the budget decision-making process through public hearings and study sessions. Service Level Determinations The City Council will establish municipal service levels and priorities for the upcoming year to guide staff in developing goals, objectives and budget proposals.
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Black Diamond Final Budget 2012 Conservative Budgeting The City will use a conservative budgeting approach and accepted analytical techniques including trending, per capita estimates of intergovernmental revenue and sales and property tax estimates based on prior year revenues adjusted for reasonable known growth factors. All positions will be budgeted for a full year. Maintenance of Facilities and Equipment Adequate maintenance and replacement of the City’s facilities, equipment and technology will be provided for in either the operating or capital budget. As practicable, these expenses will be forecasted in an equipment replacement fund in the operating budget. Sustainable Revenue Sources Ongoing operating program costs will not exceed the amount of ongoing revenue to finance those costs. The ongoing revenue will be identified along with new program costs. Cash balances in excess of the amount required to maintain strategic reserves will be used to fund one-time or non-recurring costs. In the event a fund has an emergency or economic downturn, resources from reserves may be used provided that they are replaced with in the next five years. Cost Recovery All taxpayers should not pay for a service that benefits only certain individuals. Therefore, fees will be established where possible to recover costs of such services or programs. Fees for services will be reviewed and adjusted as necessary and at least once a year. Based on Council direction, general taxpayer revenues may be used to subsidize all or a portion of the cost of services.
Fund Balance Reserve Policies
Adequate fund balance and reserve levels help mitigate short-term emergencies and the effect of fluctuations in the economy, as well as assist in the financial strength of the City’s bond ratings. Operating Fund Balance Reserves The City’s goal is to achieve a 10% reserve of anticipated expenditures in the General Fund Balance over the next five years or more. The reserve will be used to meet seasonal cash flow demands, provide a financial cushion in an economic downturn and meet emergency needs. In the event that the fund balance falls below that amount, the City will work to restore the balance with cost reductions, rate increases and other measures within five fiscal years. Contingency Reserve Fund A Contingency Reserve Fund may also be maintained in accordance with state law (RCW 35.A.33.145) to meet any municipal extent that could have not been reasonably known at the time of adopting the annual budget. The target balance may be consistent with state law at $.375 per $1,000 of assessed valuation.
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Utility Operating Policies
City utilities are enterprise funds and therefore need to maintain a revenue and expense structure that allows them to be self-supporting with adequate revenue that pays for maintenance, operations, debt service and capital costs. Adequate reserves, rate analyses and budgetary policies steer the utilities toward ongoing self-sufficiency. Utility Rates and Fees As enterprise funds, all utilities will be self-supporting through rates, connection charges and other fees. Whenever practical, smaller utility increases will be considered more frequently, to avoid large jump in rate payer bills. Revenue will pay maintenance, operation, debt service and provide funds for capital repairs and improvements. Rates and fees will be reviewed at least biennially and adjusted to adequately reflect the cost of services. Every five years a detailed rate analysis will take place to ensure financial solvency of the utilities. Utility Fund Reserves All utilities will be operated in a manner to ensure an ending annual reserved fund balance in an amount equal to 90 days of annual operational appropriations. In the event that the fund balance falls below that amount or a new utility is formed, the City will work to restore the balance to that level with cost reductions, rate increases and other measures within five fiscal years. The City may use reserves to “smooth” rate increases over a period of years and avoid large jumps in ratepayer bills.
Debt Management Policies
The City will maintain adequate available debt capacity to ensure funding for major, high priority projects. The City of Black Diamond is an infrequent issuer of debt. Debt is primarily used to finance large capital investments. Various state laws limit the City’s debt capacity. General obligation debt, backed by the full faith and credit of the City, is limited to 2.5% of the value of all taxable property within the City. That percentage includes councilmanic or non-voted debt (1.5% of property values) and Local Option Capital Asset Lending – a financing contract with the Office of the State Treasurer (39.94 RCW). Revenue bonds rely on a funding source, such as utility revenues, for debt repayment. Interfund Loans The City will use interfund borrowing when such borrowing is cost effective, thereby eliminating the administrative cost of borrowing when adequate funds are available internally within the City’s own resources. The City will not charge interest for such interfund loans that are repaid within six months. For loans beyond six months, the City will set a reasonable timeline for repayment of between one and five years and use the State’s Local Government Investment Pool (LGIP) rate. Interfund loans are permitted to cover cash flow for capital projects, where federal or state grants are approved, but there is a timing issue between city expenditures and the actual reimbursement by the granting agencies. Interfund loans shall be approved by Council with a resolution.
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Black Diamond Final Budget 2012 Bond Rating The City will strive to obtain the best bond rating possible to produce the lowest possible interest rate on each bond sale.
Cash Management and Investment Policies
At any one time the City may have several million dollars in various funds that are not needed until some point in the future for operations, capital purchases or the repayment of debt. By placing these revenues in State’s Local Government Investment Pool (LGIP) until the funds are needed, the City is able to earn interest that in turn serves as a revenue source to reduce costs to the community. Cash and investment policies reduce the City’s investment risk. Cash Sufficiency The City will at all times maintain sufficient cash on hand to meet reasonably expected expenditures for the operating period. Investment Goals The City’s idle cash will be invested on a continuous basis to maximize income. Priority will be given to legality of investment practices, the safety of the asset, followed by liquidity in case a need arises where the City needs access to the funds, followed by yield or return. Allocation of Investment Income Where permitted, the City will pool its cash resources for investment purposes. Investment income will be re-allocated to the participating funds as much as practical. Alternative Financing Schemes and Derivative Products The City of Black Diamond shall not utilize alternative financing schemes or derivative products to avoid restrictions imposed by law or to utilize tax loop holes.
Capital Projects and Planning Policies
The City of Black Diamond owns considerable assets in roads, a sewer system, water system, storm water system, parks, buildings, equipment and other capital. The preservation, maintenance and future improvement of these facilities are a primary responsibility of the City. Capital items are defined as those projects and purchases costing more than $5,000 and lasting three or more years. Capital Improvement Plan A Capital Improvement Program (CIP) is a flexible, multi-year plan containing the City’s planned capital improvement projects and the recommended financing methods for funding projects. All funds and departments are brought together in a single consolidated plan for an overall view of the City’s capital improvement needs. The plan includes the capital facilities element of the City of Black Diamond Comprehensive Plan required by the Growth Management Act and other capital projects that may not fit into the capital facilities category.
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Black Diamond Final Budget 2012 Capital projects typically apply to: 1) one-time costs for acquisition, construction, improvement, replacement or renovation of land, structures and major equipment; 2) expenditures which take place over two or more years; 3) funding with debt because of significant costs to be shared by current and future beneficiaries; and 4) systematic acquisition or repair and maintenance over an extended period of time. Capital Improvement Plan (CIP) Participation Citizen participation in the Capital Improvement Program is a priority for the City. Among the activities which shall be conducted to address the need are the following:
a) The Capital Improvement Plan shall be provided to the City Council in a timely manner to allow time for the Council members to review the proposal with constituents before it is considered for adoption
b) Council study sessions on the Capital Improvement Plan will occur during the budget deliberations and shall be open to the public and advertised sufficiently in advance of the meetings to allow for the attendance of interested citizens.
c) Prior to the adoption of the budget and Capital Improvement Plan, the City Council shall hold noticed public hearings to provide opportunities for citizens to express their opinions on the proposed plan.
All projects included in the Capital Improvement Plan shall be consistent with the City’s Comprehensive Plan. Internal Consistency The CIP will be consistent with the Capital Facilities Element of the Comprehensive Plan covering transportation, water, wastewater, stormwater, parks, recreation and general government facilities. Funding Sources City staff will analyze funding sources for all proposed capital improvement projects, including grant opportunities. Under Washington law, the City can only expend revenues from the Real Estate Excise Tax (REET) for capital items. Real estate excise tax of one-quarter of one percent on the sale of real property is currently dedicated to general government capital improvements and a second one-quarter of one percent is allocated to public works projects. Both allocations may be changed by the Council. These designated revenues are collected in the Special Revenue Funds and then transferred to the appropriate funds for expenditures of debt service or capital projects as budgeted. Each REET fund has established a targeted reserve of $200,000 to $250,000 to cover an emergency or economic downturn. Relationship between Operating Budget and Capital Improvement Plan The Capital Improvement Plan, as distinguished from the Operating Budget, is a multi-year financial plan for the acquisition, expansion, or rehabilitation of infrastructure, capital assets, or productive capacity of City services. Only those projects scheduled during the first year of the plan are adopted as part of the City’s annual budget. Additionally, projects to be funded by bonds or “alternative funding” are budgeted when the funding is secured.
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Accounting, Financial Reporting and Auditing Policies
The City was incorporated in 1959, and operates under the laws of the State of Washington applicable to a Non-Charter code City classification adopted in 1990 with a Mayor-Council form of government. The City is a general-purpose governmental entity that provides general government services including law enforcement, fire, street improvement, parks and general administrative services. In addition the City owns and operates a water, sewer and drainage system. Accounting and Budgeting System The City of Black Diamond will establish and maintain a high standard of accounting practices. Accounting and budgeting systems will at all times conform to the State of Washington Budgeting Accounting Reporting System (BARS) and federal and state regulations. Cities with populations under 25,000 are classified as category 2 cities and use the allowed accounting. The accounting is single-entry, cash basis accounting, which is a departure from generally accepted accounting principles (GAAP). The city uses the revenue and expenditure classifications contained in the Budgeting, Accounting and Reporting System (BARS) manual. The manual is prescribed by the State Auditor’s Office under the authority of Washington State Law, Chapter 43.09 RCW. Financial Reporting Reporting frequency –Monthly budget and actual reports are distributed to all departments. Quarterly reports, as a minimum frequency, are presented to the City Council. Annual Report-Will be completed by April 30th and is distributed to the City Council, departments and the State Auditor’s Office. Reporting Improvements-The City will strive to continue to make improvements in its financial reporting so that information available to the public, the City’s governing bodies and other city departments is clear and the best available for sound financial decisions. Accounting System-A comprehensive accounting system is maintained to provide all financial information necessary to effectively operate the City. Full Disclosure -All public reports are to contain full and complete disclosure of all material matters. Audit Policy The City will assist the State Auditor’s Office in whatever way possible in conjunction with the preparation of the audit every two years and will implement modifications identified by the State Auditor to improve the City’s internal controls and financial practices.
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City of Black Diamond 2012 Budget Calendar
INTERNAL DATE
STATE LAW LIMITATIONS
BUDGET PREPARATION STEPS
July 25 None Finance formulates message to accompany department budget requests
August 2 September 12 Departmental budget requests distributed
August 2 None Salary and Benefits projections for 2012
August 19 September 26 Department request estimates to be filed with Finance
August 27 October 3 Revenue projection for all funds; estimate of General Fund ending balance for December 31, 2011
Sept 29 None Finance provides expenditure budgets for October 2 Council packet
Sept 29
October 3 Finance submits to CAO the proposed preliminary budget setting forth the complete financial program
Sept 29 (Workstudy) October 12
October 3
CAO provides Council with current info on revenue from all sources as adopted in 2011 budget, and provides them with the proposed preliminary budget setting forth the proposed General Fund revenue
October 12 (Workstudy)
None Mayor, Finance and Department heads review General Fund expenditures budgets with Council
October 27 (Workstudy)
None
Council reviews Public Works budgets for revenues and expenditures for all Public Works budgets, including street, water, wastewater, stormwater and all associated funds. Also reviews overall budget.
November 2 November 2 CAO prepares preliminary budget and budget message and files with the city legislative body and city clerk
November 4 and November 11
November 4 and November 11
City Clerk publishes Notice of Public Hearings on 2011 budget once a week for two consecutive weeks and publishes filing of preliminary budget
November 19 November 20 Copies of the Preliminary Budget made available to the public
November 22 (Special Mtg.)
November 22 City Council holds public hearing on revenue sources and expenditures for the upcoming budget year including possible increases in property tax revenue
November 22 (Special Mtg.)
November 22 Property tax public hearing
November 22 (Special Mtg.)
Before Nov 30 City Council adopts preliminary property tax levy for 2012 budget (possibly hold 2nd in December due to delays in information from the County
December 1 (Regular Mtg.)
December 1 City Council holds final public hearing on 2012 budget
December 1 or 15, (Regular Mtgs.)
December 1 or Dec 15
City Council adopts Final 2012 budget and transmits to the State Auditor’s Office
Public Utilities Operator 4,620 4,700 4,792 4,884 4,976
Public Works Administrative Asst 3 4,166 4,375 4,594 4,823 5,065
Utility Worker 3,257 3,572 3,887 4,202 4,538
Utility Worker Seasonal (hourly) 12.98
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City of Black Diamond Statistics City Hall Address: 24301 Roberts Drive PO Box 599 Black Diamond, WA 98010 Phone: (360) 886-2560 Fax: (360) 886-2592 Class: Code Form of Government: Mayor-Council Model Traffic Ordinance: No Wards: No Special Districts: Auburn School District No. 408, Enumclaw School District No. 216, Kent School District No. 415, King County Ferry District, King County Flood Control Zone District, King County Public Hospital District No. 1, King County Rural Library District, Port of Seattle, Tahoma School District No. 409 Web Site: www.ci.blackdiamond.wa.us Business Hours: 8:30am - 5:00pm Council Meetings: 1st & 3rd Thu - 7:00pm County: King Incorporation 1959: Although the City has been around for more than one hundred years as a coal mining town, the City of Black Diamond did not incorporate until 1959. It was determined by a favorable majority vote on January 20, 1959; and the first official meeting of the Black Diamond City Council was held on March 3, 1959.
Black Diamond location: on Hwy 169, south of Interstate 90, in southeast King County about 30 miles southeast of Seattle. It is near Renton (18 miles), and Enumclaw (8 miles). Black Diamond is positioned 47.31 degrees north of the equator and 122.00 degrees west of the prime meridian.
Population and land area: The population of Black Diamond is approximately 4,180 (2009). The amount of land area in Black Diamond is 8.381 sq. kilometers. The amount of surface water is 0.212 sq kilometers. Black Diamond elevation is 628 feet above sea level.
Attractions:
Flaming Geyser State Park
Flaming Geyser State Park is a 480-acre day-use park with more than three miles of freshwater shoreline on the Green River. The park's most unique feature is its "geysers" (methane seeps). Park activities include whitewater rafting and model airplane flying.
Black Diamond Final Budget 2012 City of Black Diamond Statistics, Cont.
Black Diamond Historical Museum PO Box 232 32627 Railroad Ave at Baker Street Black Diamond WA 98010 Phone: 360-886-2142 This museum has exhibits of 19th century machinery, a jail and more. Please call ahead for hours of operation
Major Businesses: Anesthesia Supply Company Enumclaw School District City of Black Diamond Palmer Coking Coal Co. Average commute: 38 minutes Educational Level: 87.5% high school diploma or higher 21.8% Bachelor’s degree or higher